AL

ID EN

TI

LABOUR MARKET INSIGHT

NF

May 2022

CO

Hull

STAFFORCE

CONTENTS: UK Labour Market Update ...............................1 Local Labour Market Update ...........................2 Stafforce ...........................................................3 Competition for Labour ...................................4 Pay Rate Analysis .............................................5 Summary ...........................................................6

The challenge is how do you compete for labour in a near fullemployment economy when every business is competing for the same people for similar job roles across several different sectors of employment?

FOREWORD The full effect of Brexit on the labour market is now evident with recent wage growth primarily reflected in sector-specific labour shortages rather than economic-wide wage pressure. Record demand in sectors such as transport and food processing have driven sectoral wage settlements well into the double digits. However, overall pay settlements remain broadly in line with their prepandemic range. As of December 2021, the employment rate and the unemployment rate have almost returned to pre-pandemic levels with nationwide staff shortages resulting in the government sanctioning 10,500 temporary work visas to attract staff for Christmas. The end of the furlough scheme on the 30th of September was set to release 1.3 million people back into the labour market with almost 1 million of those on fulltime furlough. However, this was not evident with no easing of the labour shortage. Long term unemployment has been downgraded again from 6.5% to 4.8% (3.9% pre-pandemic) which is equal to 1.6m (up 70,000 on the pre-pandemic). It is forecast that unemployment will drop during 2022 to lower than pre-pandemic levels. With demand for labour at record levels, there is still much uncertainty as to where labour is likely to come from to fulfil demand.

UK LABOUR MARKET UPDATE The Office of National Statistics April 2022 Employment Rate

Unemployment Rate

The number of UK people in employment.

The number of UK people not in employment.

75.5%

3.8%

Economic Inactivity

UK Flexi Workers

21.4%

42.58%

The number of people aged 16 64 neither working nor seeking work.

Self Employed / GIG Worker, Agency Workers, Part - Time and workers utilising Universal Credits.

UK Elementary Roles

Average Gross Pay

UK Students

10.3%

£596.00

26.9%

Working age residents employed in semi-low skilled roles.

Average weekly earnings of UK residents.

Percentage of UK population in further education.

UK Working Population

In Employment

Not In Employment

Self - Employed

Unpaid Family Workers

32,520,561

31,176,539

1,305,637

4,177,906

82,941

A increase of 244,561 on the last quarter.

1,352,434 up on the last quarter.

38, 385 down on the last quarter.

101,094 down on the last quarter.

1,293 down on the last quarter.

Government Employment Male Employment Female Employment Programmes Rate Rate

Live Vacancies in the United Kingdom

1,288,000 47,313

78.8%

72.2%

983 down on the last quarter.

0.6% up on the last quarter.

0.1% up on the last qiuarter.

*Source Office of National Statistics (April 2022)

105,000 More than the prior quarter.

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LOCAL LABOUR MARKET UPDATE Our business intelligence team have conducted this labour market study which provides important insight into the local labour market, the quality and quantity of people available, the competition for labour, market influences, considerations and limitations.

Kingston upon Hull

Yorkshire & The Humber

259,800 168,200

Population

5,526,400

Population

Working Age (16-64)

3,431,894

Working Age (16-64)

133,900

People Working

2,645,990.

People Working

Higher than the UK average of 75.5%.

7,200

Unemployed Higher than the UK average of 3.8%

22.5% 15.8%

Students

Lower than the UK average of 26.9%.

168,162

Unemployed

28.2%

Students

11.0%

Elementary Roles

45.89%

Flexi Workers

Elementary Roles % of Working Age residents employed in semi - low skilled roles, higher than the UK average of 10.3%.

43.24%

Flexi Workers Self Employed / GIG Worker, Agency Workers, Part-Time and workers utilising Universal Credits. Higher than the UK average of 42.58%.

*Source NOMIS (January 2020 - December 2020)

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STAFFORCE Who we are ...

45 Years Experience

Ranked 17th Recruiter:FAST50

£100 Million Turnover

Industry Leading Lengh of Service Corporate Team

30 Weeks

Average Temp Length of Service

4.6 Star* Google Reviews

Best Companies 2022 2* Outstanding Business

c£50,000

Raised for Charity Partners in the last 3 years'

Your team will work with you to gain a full and thorough understanding of how your demand labour plan is constructed, the use of long term forecasts, how they are shared, the accuracy, how change is anticipated and what affect failure has on your business.

PAGE 3

COMPETITION FOR LABOUR Online Reviews

68% Of the UK population base their decision making process upon reading a single online review.

Major Labour Employers - Parity Pay Rates The following employers were all advertising directly for labour at the time of publishing.

Company

Distance

Pay Rate

Incentives

Reviews

Cranswick Poultry

2.6 Miles

£10.00 Days £11.48 Nights

4 on, 4 off. Company events, company pension, free food, staff discount, onsite parking.

3.9

Willerby

4.6 Miles

£10.25 Days

OT available, health benefit scheme, pension scheme, free parking, childcare vouchers.

2.5

Swift Group

5.7 Miles

£11.25 - £17.50 p/h

Vuba Building Products

10.6 Miles

£10.37 Days

Wren Kitchens

14.6 Miles

£10.10 Days

4 days per week, 6 day rota. Onsite gym, discounted canteen, free refreshments,£500 refer a friend.

4.0

Wienerberger

20.8 Miles

£13.46 Days

6am - 6pm 4on, 4 off.Company pension, share scheme, holiday trading and tech scheme.

4.2

No featured benefits

2.7

Days only. Company events, company discounts, onsite parking.

5.0

Research shows that 91% of people regularly read online reviews and 84%, trust online reviews as much as personal recommendations. We have worked hard to ensure that our online presence, ratings and reviews, position our brands as well known and attractive destination employers of choice.

PAGE 4

PAY RATE ANALYSIS Average Starter Pay Rates

£11.02

Local Pay Rates & Available Jobs FLT As of May 2022, there were 29 FLT roles advertised within 15 miles of the Hull area. 63.42% were advertised as temporary roles, via an agency.

£11.04 £9.44 Pay Rates

£11.04 £10.99

Distance from Site in Miles

20 10 15

5

£11.02 p/h 29 Jobs 24 29

Number of jobs available by distance from branch *Source Indeed.co.uk

29 PAGE 5

SUMMARY Brand Power We have worked hard to ensure that our online presence, reviews and ratings position our brand as a well-known and attractive employer of choice. It is not just our brand that a potential worker rates us by, but also that of our partners and where the work is located. We work with our clients to improve the perception of their brand in the local marketplace through several initiatives. For example, ensuring workers are off-boarded correctly (so their final experience is positive) goes a long way in prompting them to leave positive reviews online. Brand perception is the first differentiator and provides ongoing assurances of quality.

Candidate Experience A strong brand creates a memorable impression, people know what to expect and the brand is believed to be credible and of high standing. We believe a persons experience throughout the process to be of great importance. We aim to ensure that all candidates have confidence in our service, and us as an employer, to such that they would advocate for us. In 2016, we published our Candidate Charter setting out four commitments to job seekers and candidates alike: A fair and simple process Keeping you informed Protecting your rights Developing your skills Modern workers have a fearless attitude towards work and are presented with many work opportunities. As a result, they are picking and choosing whom they work for and whom they do not. They wish only to work for good businesses that treat workers well, with respect and as a valued individual. They are attracted to businesses that enable flexibility, provide good work environments and work benefits.

Candidate Loyalty After investing so much time in attracting workers to our business, it is imperative that we work equally as hard, to retain them as staff turnover is a major cost to business in terms of replacements and reduced productivity. A study found the average cost to replace workers in manual job roles, to be 16% of the annual salary. On the current National Living Wage, this equates to c£3,000 per worker lost. The modern-day worker is very different compared to workers of the past. These modern workers are transient, they seek flexibility, variety and fleet of foot, expect pace in the job hunting process, are comfortable with short-lived work or having more than one job and are undeterred by change on a regular basis. Of the working population, 25% are engaged on a flexible basis and economists estimate this to grow to 50% by 2025. We live in an era of 'Gig Workers' and 'Millenials' and have to recognise and adjust as to how we engage their services. If we achieve this; loyalty is the creation of a strong allegiance.

Final Word Our primary objective is to find great quality candidates and when we do, match them to great work opportunities. In doing so, we are primarily concerned with their wellbeing, safety and that they are, protected from hidden exploitation risks. We ensure they receive the rights and the benefits they are legally entitled, that they are treated ethically, fairly, friendly and with respect. We include, involve and listen to them in helping us to improve our business. We want all our workers to be happy, satisfied and believe that we are a good employer. 26 In this contracted labour market with uncertain times ahead, we have to be different, 118 unusual and perhaps even unique if we are to survive and thrive. We must tune into the modern worker, use that forgotten 'art' to fish in every part of the labour 72achieve success for both of our market, become attractive, sensitive and adapt. Together, we must work strategically to businesses.

PAGE 6

Part of Nicholas Associates Group

Contact us If you’re looking for a new recruitment partnership or want to find out more about what our Group can offer, please get in touch.

nicholasassociatesgroup.co.uk