An ongoing shortage of jobseekers in Oxfordshire is continuing to put pressure on employers and is likely to be one of the major barriers to growth in 2023.

Low unemployment coupled with a shortage of people actively searching for jobs is frustrating businesses that are trying to back-fill their vacancies while also trying to attract people to newly-created roles.

The number of jobs advertised on Indeed in January was 32% higher than it was just before the pandemic and although this is slightly lower than it was at its peak, demand for candidates remains strong.

These are the findings of the latest Oxfordshire Recruitment Market Overview published by Oxford recruitment agency, Allen Associates. It is based on their own views of the market supported by data from Indeed Hiring Lab, the Office for National Statistics and other sources.

Kate Allen, Managing Director of Allen Associates, said: “It’s clear from our conversations with employers that many were expecting to see recruitment pressures ease in the face of negative growth forecasts, declining consumer confidence and seemingly endless price rises, but in reality, the challenges that we experienced in 2022 have continued into 2023.

“We are just not seeing the increase in jobseekers in Oxfordshire that many were predicting. It’s a complex picture and there are many contributing factors. Economic uncertainty has knocked people’s confidence and many are staying where they are. The increase in the cost of living has motivated others to search for new roles with better pay, but these candidates are discerning and have plenty of jobs to choose from.

“Employers are also facing the challenge of the so-called ‘missing million’ comprising older workers who left the workforce during the Covid pandemic in search of an alternative lifestyle or early retirement and have not yet been persuaded to return; EU workers who left and have not come back; and those off long-term sick because they cannot get the NHS treatments they need to enable a speedy return.”

The shortage of candidates is particularly acutely felt in Oxford which is predicted by the Centre for Economics and Business Research to have the fourth fastest-growing economy in the UK by the end of this year.

Kate Allen continued: “Demand for skilled staff in this region is even greater than in other parts of the UK. We know from talking to companies that one of their major frustrations is not being able to source the people they need to fulfil their potential, whether that is expediting growth plans, resourcing new projects or developing technologies and innovating at the speed they would like.

“The shortage of candidates in Oxford and across Oxfordshire is not limited to technical or niche roles either. Many employers are finding it equally difficult to fill their support roles, including the areas that we specialise in, covering PA and Administration, HR, Marketing and Finance.

“Talented support teams are at the heart of every successful business. They are fundamental to the smooth running of any operation and provide the infrastructure which organisations rely on to deliver their services and products, expertly and efficiently.

“There is little doubt that 2023 will be a tough year for businesses and the people they employ. Recruiting and retaining the right staff to maintain employee values and culture and to deliver successful and profitable outcomes, will continue to be key.”

There are practical steps that employers can take to try to offset the challenges, attract good candidates and succeed where their competitors may fail.

Kate Allen said: “My advice is to be open to a new and more diverse approach to recruitment; not to be afraid to shake things up a bit; emphasise everything that makes you a great employer; continue to be flexible and make sure you can act quickly and decisively.” 

The Oxfordshire Recruitment Market Overview is available to read and download now.

Based in Oxford, Allen Associates has been recruiting temporary and permanent staff at all levels for roles in PA and Administration, HR, Marketing and Finance, for 25 years. They are ideally placed to find the right person for your organisation as they conduct interviews with every candidate they register so they have a good insight into the person behind the CV.

If you’re looking for help with your next hire, please visit Allen Associates’ employers page or email [email protected]

For a wealth of information about the recruitment market and other interesting reads, please visit Allen Associates’ knowledge centre or get involved in Allen Associates HR Hub – a ‘live’ monthly webinar with speakers who talk on a wide range of HR and employment issues.