United Kingdom


  • Industry: Business Services, Government & Public Sector
  • Type: Press release
  • Date: 08/10/2013

Report on Jobs: Staff appointments continue to rise  

Key points:

  • Marked increases in both permanent placements and temp billings
  • Permanent salary inflation sharpest since February 2008
  • Vacancies continue to rise at marked pace
  • Candidate availability falls further



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.



Strong growth of staff appointments maintained...
Recruitment consultants signalled a further substantial rise in permanent staff placements during September. The pace of expansion was only slightly slower than July’s 40-month high. Temp billings similarly increased at a sharp rate, with growth close to the 15-year high seen in August.


...supported by marked expansion of vacancies
Demand for staff continued to increase strongly in September. Growth of job vacancies was at a similar pace to that recorded in August, which was the fastest for over six years. 


Candidate availability continues to fall...
September data indicated a further reduction in the availability of candidates. Solid rates of decline were indicated for both permanent and temporary staff availability.


...contributing to further increase in pay rates
Permanent salary inflation quickened slightly in September, reaching its sharpest rate since February 2008. Temp pay inflation also accelerated, with the latest rise only marginally slower than July’s five-and-a-half year high.



Regional and sector variation

Permanent placements increased across all four monitored English regions, with the North continuing to register the sharpest growth.

The Midlands saw the fastest increase in temp billings during September, while the South posted the slowest rise.


Private sector demand for staff continued to rise at a substantial pace in September. In the case of permanent workers, the latest increase was the fastest since data were first available in December 2011.  In the public sector, demand for temporary staff improved at the sharpest rate in the series history, but permanent workers saw a slight fall in demand for their services.


Demand rose for all nine categories of permanent staff monitored by the survey in September. The strongest rate of growth was signalled for Construction workers, closely followed by Engineering staff.

Hotel & Catering posted the slowest rise.  Growth of demand was broad-based across all nine temporary/contract staff sectors in the latest survey period. Engineering workers were the most sought-after. Mirroring the trend seen for permanent staff, the weakest growth was signalled for Hotel & Catering employees.



Bernard Brown, Partner and Head of Business Services at KPMG, comments:


“With another month of data showcasing a strong rise in the number of appointments and job offers on the table, it seems that business is warming to calls for investment from Mark Carney.  Improved market conditions, higher activity levels amongst clients and generally stronger levels of confidence amongst employers are certainly one of the major factors underpinning the latest rise in placements.


“Only last week the Bank of England argued that recovery will only be sustainable over the long term if regions beyond London grow strongly.  Against this backdrop it is also welcome news to see permanent placements increase across the whole country.  The North is showing strongest growth, with the Midlands driving a rise in temporary placements.  It’s a sign that local economies are picking up and gives hope that economic recovery is not dependent on one area or sector.


“Yet it remains worrying that employees are clearly still not sharing employers’ growing faith in recovery.  Demand for staff may be up, but the number of individuals putting themselves on the market has dropped for the fifth consecutive month. Perhaps the pay on offer has to rise to encourage staff to ‘make the move’.  If it doesn’t we could be about to witness a growing gap between what the employers need and what employees are prepared to do.”


REC CEO Kevin Green says:  “This month’s figures show the jobs market continues to be the success story in the UK economy with all regions and sectors experiencing growth.  Recruiters tell us that the number of people being placed into permanent roles has now been growing continually for a year and temp growth maintains its strength following last month’s 15 year high. The good news continues with starting salaries for permanent jobs rising at the fastest rate in over five and a half years and they have been rising for the last 17 months.


“This is good news but behind this success story we can see that the division in the jobs market is getting worse with vacancies going up as the number of skilled workers to fill them goes down. There is a real two speed labour market in place. We have a buoyant, candidate driven market for skilled and professional roles, versus an oversupply of candidates for jobs that don’t rely on a specific skill set.”


He added: “Construction has rocketed to the top of the sector list of permanent in demand skills. Government schemes for house building and infrastructure projects are hotting up and making a positive impact on a sector that has really struggled in the recession. The issue we face now is finding the skilled candidates needed to fulfil these projects and keep momentum in the industry going.”


Full reports and historical data from the Report on Jobs are available by subscription.

Please contact economics@markit.com.




For further information, please contact:


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


© 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.



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