“Over 100 Applicants For A Part Time Job” – What’s Wrong With The UK’s Job Market

With last year’s October budget in full effect, it is clear that businesses are having to reduce labour hours or cut staff to remain competitive and survive. British clothing brand Next stated that whilst vacancies have fallen by over 35% over the past two years, the number of applicants per job has risen by 76%. This shows the significant barriers to entry in the current job market for applicants.

With the government incentivising households to enter the workforce in a boost to reduce benefit payments, has the government made it harder for themselves, following on from last year’s budget?

Wetherspoons chairman, Sir Tim Martin, mentioned how a part-time afternoon shift received over a hundred applications. It shows how many people are just trying to get a job. The effect is clear in the retail and hospitality sectors. With inflation being a silent killer as well, what can households or job seekers expect to see their fortunes turned around?

What can you expect

Businesses are searching for answers. Costs have drastically tightened with tariffs adding complexities on top of this. What businesses need is certainty from the government.

1. Pro-active business policies
   1. Rather than focusing on improving working conditions, it is critical for the government to focus on improving business confidence. It might be time for Reeves to think of any tax incentives to just prop up businesses in believing in economic growth.
2. Infrastructure Support
   1. Operational costs are at an all-time high, and this directly comes from a lack of skilled workers in the market. Investment in transport, energy and, importantly, digital transformation can ease costs and allow businesses to re-allocate investment.
3. Cutting down on red tape
   1. Streamlining hiring processes reduces the cost of employment for businesses. This could be in the form of simplifying contract forms or background checks.   

As we approach Christmas, businesses will want to see what answers the government will give in response to next year’s preparations.