Report on Jobs - Staff appointments increase slowly in July

Report on Jobs - Staff appointments increase slow...

The most sought-after workers were those in the engineering & construction and IT sectors, while the weakest demand trends were signalled for employees in the hospitality and healthcare categories.

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Press Release

Key points:  

  • Modest rises in permanent placements and temporary billings
  • Demand for staff grows at slowest pace in eight months
  • Pay growth quickens from June’s low but remains muted
  • Faster improvement in candidate availability  


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.

Modest rise in staff appointments

Recruitment consultants reported further increases in the number of people placed into both permanent and temporary job roles during July. Rates of growth quickened slightly from June’s lows but remained below long-run trends.

Slower growth of vacancies

Demand for staff continued to rise in July, but the rate of expansion eased further to the slowest for eight months. The most sought-after workers were those in the engineering & construction and IT sectors, while the weakest demand trends were signalled for employees in the hospitality and healthcare categories.   

Pay inflation picked up but still subdued

Growth of both permanent salaries and temp hourly rates quickened in July, but remained below their respective averages since the start of the survey in October 1997.   

Faster rise in candidate availability

Higher levels of staff availability were reported in July. Permanent candidate supply improved at the sharpest rate for 18 months, while the latest rise in temp availability was the strongest since February.  


Kevin Green, Chief Executive of the Recruitment & Employment Confederation, says: “This month’s Report on Jobs shows that the rate of jobs growth in July quickened from June’s figures. These figures show that the jobs market is continuing to perform well despite general weakness in the UK economy. We have now had two years of continuous growth and employers are still continuing to hire staff, albeit not in the numbers needed to radically reduce unemployment."

“Employment is just one per cent off its pre-recession peak but the economy is still struggling at four per cent down in comparison with 2007/2008 figures. The UK’s flexible labour market is a key reason why employment is continuing to grow. Employers are using large numbers of temporary workers which, with the Agency Workers Regulations less than two months away from implementation, shows that businesses continue to see the value of using a flexible workforce.”

Bernard Brown, Partner and Head of Business Services at KPMG, comments: “Permanent and temporary staff appointments have risen again in July, although at a very moderate pace. The good news is that we are seeing no further deterioration in the jobs market but growth is still much slower than at the beginning of the year. Employers across all sectors remain cautious about hiring new staff. The key reason for this is the uncertain economic outlook with domestic demand being weighed down by government cutbacks and falling real wages, while exports and investment are not strong enough to take up the slack. Full reports and historical data from the Report on Jobs are available by subscription."

Please contact  

- ENDS -  

For further information, please contact:  

KPMG Press Office: 020 7694 8773  

REC Helen Ablett

T: 08453 700655    

Markit Economics (technical/data queries):

Jack Kennedy

T: 01491 461087  

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 provide the most up-to-date and comprehensive monthly picture of recruitment, employment and employee earnings trends available. The Report features original research data from Markit, collected via questionnaire from a panel of 400 UK recruitment and employment consultancies. In 2000, some 1,326,000 people were employed in either temporary or contract work through consultancies and over 450,000 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  

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 nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2009. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 144 countries and have more than 137,000 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.  

Recruitment and Employment Confederation  

15 Welbeck Street, London, W1G 9XT.

T: 020 7009 2100.

F: 0207 935 4112


The REC is the representative association for the UK’s £22.5 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 2,200 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  

About PMIs  

Purchasing Managers’ Index® (PMI®) surveys are now available for 32 countries and also for key regions including the Eurozone. They are the most closely-watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. To learn more go to  

© 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.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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