United Kingdom

Details

  • Service: Advisory, Management Consulting
  • Type: Press release
  • Date: 08/11/2013

Report on Jobs - Permanent salaries rise at fastest rate since December 2007 

 

Key points:

 

  • Sharper increase in salaries as candidate availability deteriorates further

 

  • Strong growth of permanent and temporary appointments maintained

 

  • Overall vacancies rise at sharpest rate in over six years

 

Summary:

 

The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs – published today – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies. 

Staff appointments continue to grow strongly...
Recruitment consultants signalled further increases in both permanent placements and temp billings during October. Although easing marginally since September, the rates of expansion remained considerable.

...supported by sharp rise in vacancies
Overall demand for staff rose at the fastest pace since June 2007. Higher vacancy levels were signalled for both permanent and temporary workers, in both the public and private sectors and across all monitored job categories.

Permanent salary inflation accelerates...

Starting salaries for successful permanent candidates rose further in October, with the rate of increase accelerating to the strongest since December 2007. Temp pay rates also rose, albeit at the slowest pace in four months.

...amid growing shortages of qualified candidates

Steeper falls in both permanent and temporary staff availability were reported in October, with the rates of decline the sharpest in around six years.

Regional and sector variation

All four monitored English regions saw higher permanent placements. The strongest growth was recorded in the Midlands, while the slowest expansion was indicated in London.

 


The Midlands continued to post the strongest temp jobs growth during the latest survey period, while the South registered the slowest rise.

Private sector vacancies continued to rise at a faster pace than public sector roles in the latest survey period.  


In the private sector, permanent staff saw stronger demand growth than temporary/contract workers, while in the public sector the reverse was true.

All nine types of permanent staff monitored by the survey saw improved levels of demand for staff during October. The strongest growth was signalled for Engineering workers, followed by Construction staff and then IT & Computing employees.

Higher demand was broad-based across all nine types of temporary/contract staff in October. Mirroring the trend signalled for permanent employees, the most sought-after category was Engineering. The slowest growth was recorded in the Executive/Professional category.

Comments:


Bernard Brown, Partner and Head of Business Services at KPMG, comments: "For those who have set government policy the latest figures are great news, with higher numbers of job opportunities emerging alongside the sharpest increase in permanent wages for 6 years, as demand continues to strengthen. Whilst this is a sure sign of economic recovery, we must not get complacent because, in the higher earning bracket, left unchecked wage inflation will bring different challenges to businesses who strive for profitable growth.

“Another question that must be addressed revolves around whether increasing salaries are enough to entice job hunters to move between organisations.  All the evidence suggests not, with permanent and temporary staff availability falling in recent months.  It means employers cannot rely on wages alone as a hook to attract top talent.  The time has come for them to develop a raft of offers as part of the overall remuneration package.  If they fail to do so, they will struggle to recruit and bring their organisation back to pre-downturn levels.”

REC chief executive Kevin Green said: “This is another month of growth for both temporary and permanent jobs, in all regions, in all sectors and now across both the private, and public sectors. The real good news for workers is that starting salaries have risen at the sharpest rate in 6 years - however this is the result of a six year low in the availability of staff to fill the number of jobs available. The skills shortage shows no signs of abating and although it is starting to drive wages up there is a real danger that it could cause serious damage to future economic growth in the UK.

 

“Recruiters are also telling us that the hiring process is starting to pick up speed as employer confidence returns, which should lead to greater fluidity returning to the jobs market and greater opportunities for those looking to enter the jobs market or make the next step up in their career.”

Full reports and historical data from the Report on Jobs are available by subscription. Please contact economics@markit.com.

Ends

For further information, please contact:


KPMG

 

Mike Petrook, KPMG Press Office 020 7311 5271 (t), 07917 384 576 (m) or mike.petrook@kpmg.co.uk  

 

Markit Economics (technical/data queries)

 

Jack Kennedy, Senior Economist, Telephone 01491 461087 / jack.kennedy@markit.com   

 

Note to Editors:

 

The Report on Jobs is a monthly publication produced by Markit on behalf of the Recruitment & Employment Confederation and KPMG. The report features original survey data which provides cross-sector and pan-region analysis of the UK labour market, drawing on original survey data provided by recruitment consultancies.

 

The Report features original research data from Markit, collected via questionnaire from a panel of 400 UK recruitment and employment consultancies. In 2010/11, some 1,049,333 people were employed in either temporary or contract work through consultancies and 604,193 people were placed in permanent positions through consultancies. Data for the monthly survey were first collected in October 1997 and are collected at the end of each month, with respondents asked to specify the direction of change in a number of survey variables.

 

All Index numbers are calculated from the percentages of respondents reporting an improvement, no change or decline. These indices vary between 0 and 100 with reading of exactly 50.0 signalling no change on the previous month. Readings above 50 signal an increase or improvement; readings below 50 signal a decline or deterioration. Reasons given by survey respondents for any changes are analysed to provide insight into the causes of movements in the indices and are also used to adjust for expected seasonal variations.

 

Markit do not revise underlying survey data after first publication, but seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series. Historical data relating to the underlying (unadjusted) numbers, first published seasonally adjusted series and subsequently revised data are available to subscribers from Markit. Please contact economics@markit.com.

 

A regional Report on Jobs series is now available comprising four regional reports tracking labour market trends across the Midlands, the North of England, the South of England and London. The reports are designed to provide a comprehensive and up-to-date guide to labour market trends and the data are directly comparable with the UK Report on Jobs.

 

About KPMG

 

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

About Recruitment and Employment Confederation

 

15 Welbeck Street, London, W1G 9XT. Tel: 020 7009 2100.   Fax: 0207 935 4112 Website: www.rec.uk.com

The REC is the professional body representing the UK’s £24.6 billion private recruitment and staffing industry with more than 8,000 recruitment agencies and 6,000 recruitment consultants in membership. There are more than 1 million temporary workers registered with UK agencies who are deployed in industry, commerce and the public services every day.

 

About Markit

 

Markit is a leading, global financial information services company with over 3,000 employees.  The company provides independent data, valuations and trade processing across all asset classes in order to enhance transparency, reduce risk and improve operational efficiency.  Its client base includes the most significant institutional participants in the financial market place.  For more information, see www.markit.com.   

 

© Copyright in the Report on Jobs, including the Report on Jobs survey data, is owned by Markit Economics Limited. Distribution or storage including databasing by any means including, without limitation, electronic distribution is not permitted without the prior consent of Markit.

 

Share this

Share this