Candidate applications are slowly rising, coinciding with the end of the furlough scheme. Has this had any bearing on a rise in candidate availability? WaveTrackR‘s Emily Buckley looks at the current landscape, the reasons for a boost to applications, and what to do to increase your talent attraction in what remains a candidate-short market.
At the beginning of 2021 there were fears that the end of the furlough scheme at the close of September would impact economic recovery by significantly raising the unemployment rate. With the massive boost to jobs over the spring and summer (WaveTrackR recorded soaring numbers of jobs from May, culminating in a massive 400% over the 2020 monthly average in September) those fears had reduced by the start of the autumn. However, according to think tank the Resolution Foundation, there remained 1.1 million people on furlough as the scheme ended. The Office for National Statistics, too, estimated that there were between 900,000 and 1.4 million employees still furloughed at the end of September.
What happened to those workers still on furlough as the scheme ended? Have applications, which had been steadily dropping for months, increased since furlough ended? We look at the data and try to piece together the puzzle.
Applications rise in conjunction with furlough ending
A survey conducted by the Resolution Foundation found that 88% of respondents that were still either fully or partly furloughed in September were back in work in October. Some of these will have been kept on and gone back to their previous jobs but others had already found employment elsewhere. The survey found that 15% of furloughed employees were also working in another job in September. This chimes with WaveTrackR data which shows that in September applications increased for the first time since May. October saw another rise, taking applications to a record high for 2021 of 147% over the 2020 monthly average.
Other reasons for a rise in applications
Could the rise in applications be down to a release of workers from the furlough scheme, or perhaps a rise in confidence following the successful roll-out of the vaccination programme? It could be simply a result of a post-summer holiday desire for change combined with children returning to school, a trend we often see in the autumn months but amplified in 2021 by the lack of opportunities to move jobs over the past 18 months. The boost to job numbers has undoubtedly played a part too, giving both passive and active candidates more options and a greater degree of security to make a decision to change jobs.
A buoyant backdrop to the end of furlough
The ONS’ recently released labour market overview found that the third quarter of 2021 was characterised by rising employment, falling unemployment and record numbers moving jobs, the latter a result of resignations rather than redundancies. Early indicators for October showed payrolled employment continuing to rise. A buoyant market would certainly have made it easier for those losing their jobs at the end of the furlough period but it also suggests that perhaps workers are ready to move jobs now that they feel the market is strong enough, giving rise to a boost to applications.
Could worker shortages be beginning to ease?
Two consecutive months of rising application numbers is good news indeed for recruiters struggling to match demand with quality applications. Combine this with a decrease in jobs in October compared to September and we are beginning to see the gap between jobs and applications narrow. However, these are early days and many of the issues that led to decreasing candidate availability have not been solved – and are unlikely to be solved any time soon. The exodus of thousands of EU workers, historic skills shortages, and a disinclination to work in certain jobs following the pandemic are all issues that will take years to resolve. The boost to applications is likely down to candidates feeling safer about moving jobs but could also be due in part to an increase of candidates in the market after either resigning or being made redundant from their jobs following the end of the furlough scheme. The slight decrease to jobs could be due to the beginning of the annual winding down of hiring as we approach the end of the year. The two factors together will ease the candidate shortage situation to a small degree but we will likely experience a candidate-driven market for some time to come.
Tips to increase your talent attraction in a candidate-short market
- Target your job board advertising
It seems obvious but advertise where your candidates are searching. The ‘spray and pray’ method is long dead, made extinct by the ability to use data to understand which job board is most likely to produce the highest number of applications for each job you post. Targeted advertising is key to finding, at pace, qualified candidates who are actively searching for your jobs.
- Post at the right times
WaveTrackR data consistently finds that the majority of candidates apply towards the beginning of the week but most jobs are posted at the tail-end of the week, often a full four or five days before candidates are actively applying. In order to capture candidate attention when they are searching for jobs, schedule your job ads to be posted on the days they are most likely to be looking. That way your job will be fresh and higher up the list, increasing the chances of it being found by qualified candidates.
- Optimise your job ad copy
Follow best principles when writing your job ads and you’ll not only reach more qualified candidates but encourage them to apply. Keep it concise (the word count should be around 200-300 words), include keywords but don’t overstuff the content with them, use gender neutral words, ensure it’s benefit-led and remember that it is an advert so write compellingly. Ensure those benefits – especially flexible working, wfh, and others that are top of the list for candidates right now – stand out in the ad.
- Focus on the candidate experience
Attracting talent to your jobs is merely the first step of the process. Once they have made the decision to apply, don’t make the journey laborious by an overly complicated application form, or too many tests and interviews. Equally keep candidates updated so they don’t lose interest and move on to a competitor.
Candidate applications are beginning to slowly increase but the gap remains fairly wide between the volume of jobs on the market and the availability of candidates. Whether the rise in applications is in part down to the end of furlough releasing workers into the market is hard to say. The hope is that employees who were nervous about moving jobs and those who felt they couldn’t return to work because of domestic commitments, lack of confidence in the market, or worry over COVID measures, may now be beginning to search for jobs again. Only time will tell. 2022 could be a very interesting year.
WaveTrackR is an intelligent multi-posting tool, data analytics platform and candidate management system. It will advise you when, where and what to post, boost your recruitment power online and increase your ROI.
