War of Talent | Hiring - what goes up must come down

What goes up must come down is a common idiom that dates back to the 1800s and comes from the physical properties of gravity.

It’s also applicable to this month’s insight that will look at how the war for talent might be turning amidst the current economic pressures. It doesn’t seem that long ago that we saw a swell of offering higher wages to attract and retain the best people. Is hiring cooling down after the sustained period of rapid recovery post-pandemic?

Businesses are making changes

With one foot in a recession and businesses affected by inflation and rising costs, many are taking action to cut costs and mitigate risks. Companies are making cuts to the workforce to reduce costs. Are the tech job cuts a warning to the broader economy? In recent weeks, Google Parent firm Alphabet, Microsoft, Amazon and Spotify have announced the cutting of roles, a hiring freeze, or employing other tactics to reduce staff and costs. Asda, Paperchase and publisher Reach have also announced cuts in other sectors.

The latest labour market statistics for the UK show trends that have been seen in recent quarters: a continued fall in earnings in real terms, a fall in the number of vacancies and an increase in redundancies. There was no change in the employment, unemployment, or economic inactivity rates from those published in the January statistics to those published in December – but is that about to change?