Service Sector Survey – July

According to the CBI, the results of the Service Sector monthly Survey showed that overall business volumes have recovered in the 3 months to June while employment continues to grow.

This continues to present challenges for those looking to hire in many sectors.

“Business volumes across the service sector in the quarter to June returned to growth for the first time since July 2022, albeit at a marginal pace. Business & professional services volumes grew modestly, while consumer services volumes were broadly unchanged (after having fallen for 12 months in a row). Service sector employment grew at an above-average pace in the quarter to June, with both sub-sectors continuing to see headcount expand.

The outlook for services activity over the next three months is encouraging, with volumes set to grow at a faster pace in both business & professional and consumer services. Additionally, employment growth in services is set to accelerate slightly, reflecting anticipated increases in headcount in both sub-sectors. However, expectations for average selling price growth remain relatively elevated for the next three months for both business & professional and consumer services.”

The increase in employment and shortage of skills in key areas continue to apply pressure on the recruitment market and increase wage inflation. Using a strong consultative recruitment partner is more important than ever as these pressures seem unlikely to go away, at least in the short term.

If you would like further information on the recruitment market or candidate availability in your sector, please feel free to get in touch with Mark Esom at mesom@fuelrecruitment.co.uk.