Overview of the Lancashire Labour Market

As of July 2024, Lancashire faces a tight labour market amidst the broader UK trend of near-full employment. With businesses competing for similar roles across multiple sectors, recruitment challenges are on the rise. Recruitment agencies are critical players in navigating these difficulties, helping companies find, attract, and retain talent in this competitive environment.

UK Employment Context:

• The UK employment rate (16-64) stood at 74.3% in April 2024, reflecting a slight decrease over the last quarter.
• Despite a net increase in employment (up by 201,000 from April 2023 to 2024), the market faces pressures from higher unemployment rates (4.4%) and a shrinking pool of vacancies (down for the 23rd consecutive period, now at 904,000).

Regional Labour Market Insights: Lancashire’s labour market is diverse, but its challenges mirror national trends. Recruitment is highly competitive across its key towns and cities, with businesses facing varying degrees of labour shortages and pay rate pressures.

Burnley

• Working Age Population: 58,300.
• Employment: Lower than the UK average of 78.8%, indicative of potential labour availability.
• Flexi Workers: 47.5% of the workforce, below the UK average of 49.27%, revealing potential gaps in flexible work arrangements.
• Key Industries: The manufacturing and retail sectors remain strong, with significant demand for production operatives. 25 roles within 15 miles of Burnley were advertised with an average starting pay of £11.70 p/h.

Clitheroe

• Working Age Population: 36,800, with higher employment than the national average.
• Unemployment: Lower than the UK average (3.7%), making it a difficult area to source new talent without enticing competitive offers.
• Flexi Workers: 46.35%, slightly lower than the national average, emphasising a need for more flexible job opportunities.
• Local Pay Rates: Average pay for production operatives starts at £11.43 p/h with 23 advertised roles as of July 2024.

Preston

• Population: 147,800 with a strong working-age cohort of 96,500.
• Employment Levels: Higher than the UK average, creating competition for talent among employers.
• Flexi Workforce: 48.95%, slightly below the national figure, but offering considerable opportunity for part-time and gig work.
• Vacancies: 35 production operative jobs advertised at an average starting pay of £11.30 p/h, presenting opportunities for recruitment agencies to match candidates with competitive rates.

Colne

• Population: 95,800 with a working age population of 58,100.
• Labour Market Insights: High demand for students and workers in elementary roles, though the unemployment rate (13.6%) is notably higher than the national average.
• Key Vacancies: 30 production operative roles are available within 15 miles at £11.65 p/h, making it an attractive hub for local recruitment drives.

Blackburn

• Population: 155,000 with 97,200 in the working age bracket.
• Unemployment: Higher than the UK average, reflecting an oversupply of workers in low-skilled roles.
• Elementary Roles: At 13.6%, this is above the UK average, making Blackburn a key area for recruiting entry-level and semi-skilled workers.
• Local Pay Rates: 60 production operative roles are available within 15 miles at £11.49 p/h, providing opportunities for workers and challenges for employers in attracting the right talent.

Recruitment Strategies in a Competitive Market

1. Enhancing Flexibility: As demand for gig and flexible work arrangements increases, we must cater to modern workers’ preferences for short-term, flexible roles. Nearly 50% of the workforce in Lancashire are flexi workers, underscoring this shift.
2. Competitive Pay Rates: With parity pay rates among local employers, standing out requires offering better incentives beyond base pay, such as wellbeing programmes, bonuses, and employee discounts. For example, employers like Morrisons in Colne offer pay rates up to £12.99 for night shifts, combined with incentives like free parking and wellness programs.
3. Improving Candidate Experience: We must focus on creating a seamless recruitment experience. Positive candidate experiences can boost loyalty, crucial in a labour market where turnover is expensive, with replacement costs for manual jobs averaging 16% of annual salary (approximately £3,000).

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Lancashire’s labour market is characterised by high demand for both skilled and elementary workers, yet tight competition for talent. Adopting a flexible, candidate-centric approach, and offering competitive pay and additional incentives are crucial to successfully navigate the challenges of this near full-employment economy. Building strong employer brands and fostering loyalty will be key to retaining top talent and ensuring sustainable business growth in the region.

If you require recruitment support within the Lancashire region, we have recently opened a new Lancashire Hub. We are keen to build relationships within the region and share our expert industry knowledge. Reach out to us at lancashire@stafforce.co.uk to arrange a confidential discussion.