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.
Faster growth of permanent and temporary appointments...
The number of people placed in jobs by recruitment consultancies rose at a strong and accelerated pace in July. Permanent placements increased at the sharpest rate since March 2010, while temp billings were up at the fastest pace in almost two-and-a-half years.
...as demand for staff strengthens further
Supporting higher appointments was a further rise in demand for staff during July. Overall job vacancies increased at the strongest rate in six years.
Pay growth gathers pace...
The rate of inflation of permanent staff salaries quickened in July to its highest for over two years. Temp pay rates rose at the sharpest pace since January 2008.
...reflecting lower staff availability
Recruitment consultants indicated a decline in the availability of candidates to fill job vacancies during the latest survey period. Lower availability was signalled for both permanent and temporary staff, with the former registering the sharper fall.
Regional and sector variation
Higher permanent staff appointments were signalled in all four monitored English regions during the latest month, with the fastest expansion recorded in the North. Growth of temp billings was broad-based across the English regions in July. The strongest increases were seen in the North and the South.
Public sector demand for permanent staff fell in July, following a rise in the previous month. Public sector demand for temp staff meanwhile rose at a solid pace that was the fastest so far this year. Private sector demand for staff strengthened in July. Stronger rates of growth were signalled for both permanent and temporary workers, with the latest expansions the sharpest since data were first available in December 2011.
Higher levels of demand were signalled for all nine types of permanent staff monitored by the survey in July. The strongest rate of expansion was indicated for Engineering workers, as has been the case throughout the past four months. The slowest vacancy growth was recorded for Blue Collar staff.
All nine categories of short-term staff posted improved levels of demand in the latest survey period. Nursing/Medical/Care posted the fastest growth, followed by Construction. The weakest expansion was signalled for Accounting/Financial workers.
Bernard Brown, Partner and Head of Business Services at KPMG, comments: “With house price and service sector figures moving in an upward direction, indications are that the economy is getting stronger. Confidence is certainly evident amongst employers; with many conserving cash for a number of years, they are beginning to invest in their people and, as the search for talent is stepped up, the jobs market is looking buoyant again.
“High levels of demand for staff were signalled across every sector we analysed and the same can be said across each region of the UK. In a sign of the surge in confidence, the latest figures also represent the sharpest increase in permanent placements for more than 3 years and the biggest growth in demand for six. This does, of course mean that a gap exists between the demand for staff and the quality of candidates available so the onus is on candidates to improve their skills and prove their capability.
“If the current trend continues employers will, however, be faced with another conundrum. For some time staff have sat tight refusing to move when job security was low. Now the best staff will be looking for better offers so employers will need to strike a balance between recruiting new blood and retaining their best employees.”
REC chief executive Kevin Green says: “The jobs market continues to skyrocket with permanent employment and temporary placements at three and two year highs, and vacancy growth accelerating to a six year high. A combination of confidence returning to the UK economy and higher employer demand have contributed to this impressive set of figures.
“Starting salaries accelerated in July reaching the highest for 26 months. This is an early indicator of increased competition for candidates and skills shortages in a growing number of sectors. In addition to this, hourly rates for temp workers increased at the strongest rate since January 2008.
“We anticipate starting salaries increasing over the coming months as the economy strengthens and competition to secure talent hots up.”
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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 firstname.lastname@example.org.
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.
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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.
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