Charity sector expectation on employment growth is at the highest level it has been in four years, though organisations are struggling to fill roles, according to a survey.
Figures from the Bank of England’s decision maker panel survey were made available to Pro Bono Economics (PBE), and split not-for-profit organisations from private businesses. Out of around 2700 responses each quarter, approximately 200 charities participate.
The think tank’s analysis stated that “vacancies are at record levels, and the overwhelming majority of both businesses and charities are now struggling with recruitment”.
Job vacancies are at record levels for charities and businesses
Indeed, about 85% of respondents from both sectors are finding it harder than normal to recruit new employees while only 2% are finding it easier.
PBE suggested both businesses and charities are expected to continue recruiting at similar rates to each other going forwards, as expected employment growth rates over the next year converge at 3.2% in Q2 2022 for both sectors.
DCMS’ latest statistics showed that the number of filled jobs in the civil society sector fell 0.5% in 2021 while the number of filled jobs in the economy as a whole dropped 0.6%.
PBE noted this Bank of England dataset shows something similar, “that business and charity employment growth rates closely mirrored each other throughout the crisis”.
'Increasing pay could give organisations a competitive edge in this battle for talent'
PBE said: “Increasing pay is one of the methods by which organisations can gain a competitive edge in this battle for talent. It can also be used to respond to the growing cost of living crisis faced by their employees.”
“It adds the rate of earnings growth is not keeping up with inflation. In May 2022, year-on-year realised wage growth was up 5.6% for businesses, but up 3.8% for charities.
PBE added: “Current charity sector expectation on employment growth is at the highest level it has been in four years. While the labour market is tight and the private sector is also on the hunt for more employees, the growing pay gap between the sectors might hold the charity sector back from filling the vacancies it intends to create.”
PBE reported two fifths (41%) of charities surveyed reported facing high or very high levels of overall uncertainty, while more than half (54%) of businesses reported the same.
At the height of the first lockdown in Q2 2020, 79% of charities reported high or very high levels of uncertainty.
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