According to new figures from the Office of National Statistics, the number of people in employment in Scotland has risen slightly in the last three months, whilst the unemployment rate remained steady at 4.4%.
In their latest report, the ONS said more than 2,630,000 people aged 16 – 64 were working between June and August. The latest employment rate of 74.3% was 0.3 percentage points up on the previous quarter but still 1.1 percentage points lower than pre-pandemic levels. This means that Scotland joins London as the only parts of the UK where employment remains lower than before the pandemic.
Vacancies are still being advertised at record levels, rising another 2% in September, totalling 56,000 jobs advertised across Scotland – nearly 10,000 more than this time last year.
Yet despite increased vacancies and rising starting salaries, many employers are still struggling to entice talent to leave the relative security of their current job. As many as 65% of employers are reporting that hiring is more difficult now compared to the norm at this time of year.
With the levels of Covid cases not as low as many would have hoped this far into the vaccination programme, many will be fearful of what that the winter months may bring. This fear of another hard winter is likely fuelling many employees’ reluctance to change jobs. If we manage to get through to 2022 without another lockdown, confidence may rise enough for many to make the leap to a new role.
Speaking in today’s Herald, s1jobs Commercial Director, Gavin Mochan warns this could end up causing problems for employers who fail to keep their staff happy: “Companies have enjoyed artificial retention rates during the pandemic, yet the time bomb of pent-up staff turnover could be ticking. The average employee turnover rate in the UK is about 15% per year, but this could exceed 20% if companies fail to look after their staff.”
He advises that the best way for companies to keep their business stable during these times of staff shortages is to focus on improving employee satisfaction. He suggests employers should “focus on the people who stay, reward them as best as possible and recognise their achievements – appreciation and a sense of belonging are the hidden torpedoes to retention.”
You can read the full analysis by s1jobs on the Herald website.