Report on Jobs: Permanent placements growth at 26-month high

Report on Jobs: Permanent placements growth

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.

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Key points:

  • Permanent staff appointments rise at fastest pace since April 2011
  • Strongest increase in temp billings for seven months
  • Vacancy growth at three-year high
  • Pay growth accelerates
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.
Stronger increases in permanent and temporary appointments Growth of permanent staff placements accelerated markedly in June, reaching the fastest rate for over two years. Similarly, temporary/contract staff billings rose at a much sharper pace, with the latest increase the strongest in seven months. 
Demand for staff rises at strongest rate in three years The rate of expansion of job vacancies accelerated to a three-year high in June. Sharper increases in demand were signalled for both permanent and temporary workers. 
Pay growth accelerates Permanent staff salaries rose at the fastest pace for 23 months in June. Temporary/contract staff pay growth also quickened, reaching the sharpest since March 2008. 
Permanent staff availability down, but temp availability rises Recruitment consultants signalled a further drop in the availability of candidates for permanent roles during June. However, temp availability continued to improve.
Regional and sector variation
The South posted the fastest rise in permanent appointments during the latest survey period, closely followed by the North. The Midlands saw a solid expansion, while London recorded a moderate increase. 
Temporary/contract staff billings rose in each of the four monitored English regions, although in the case of the Midlands growth was marginal. The North posted the strongest increase.
Public sector permanent vacancies rose for the first time in six months during June, while public sector temporary/contract vacancies were unchanged from May. In the private sector, both permanent and temporary/contract vacancies increased at the fastest pace since data were first available in December 2011. 
Growth of demand was broad-based across all nine types of permanent staff monitored by the survey in June. Engineering remained the most sought-after category, posting a substantial increase in vacancies. The slowest rates of expansion were indicated for Blue Collar and Hotel & Catering workers.
Mirroring the trend seen for permanent employees, Engineering workers were the most in-demand category of temporary/contract staff during June. This was closely followed by Nursing/Medical/Care. The weakest increase was signalled for Accounting/Financial staff.
Bernard Brown, Partner and Head of Business Services at KPMG, comments: “It’s often said that things happen ‘in threes’ and the latest jobs data has provided the hat-trick, complementing positive reports about the services sector and UK GDP.
“Certainly as Mark Carney reflects on the first week in his new job, he must be delighted as all the signs seem to be pointing towards an economy on an upward trajectory.
“The latest figures reveal permanent placements enjoying their highest growth rates for over two years and temporary roles being filled at the quickest pace since Christmas. Perhaps the sun has finally come out to shine on the jobs market and economy at large? Employers seem to think so. Many have stepped up their search for staff with demand for staff accelerating to a three year high. Confidence is even beginning to show itself with employers prepared to increase the salaries they offer to new employees.
“At the same time, candidates are still hedging their bets. We are still witnessing a cautious approach with many hanging on to the jobs they know, fearing the insecurity that comes with starting somewhere new. Yet, if the economy continues along its current path, it is likely that candidates will also step out in increasing numbers as the year goes on.”
REC chief executive Kevin Green says: “We are now seeing the UK jobs market blast off with the highest number of people being placed in permanent jobs for two years and demand for staff at a three year high. 
“The UK jobs market has been agile enough to weather the recession and emerge with more people in work than ever before and has performed considerably better than our European counterparts.
“Our main concern is that the soaring success of the jobs market and signs of economic recovery could be undermined if the government does not do more to address the growing skills gap. Roles in engineering and IT are in ever increasing demand as recruiters struggle to source the talent that businesses need to succeed. However more roles, such as sales and digital marketing, have been added to this growing list in the last couple of months and show no signs of disappearing. 
“The war for talent in growth sectors is driving starting salaries to increase at the fastest pace in two years.”
Full reports and historical data from the Report on Jobs are available by subscription. Please contact
- ENDS - 
For further information, please contact:
Media enquiries:
Mike Petrook, KPMG Press Office

T: 020 7311 5271

M: 07917 384 576

Technical/data queries:
Jack Kennedy, Senior Economist, Markit Economics

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KPMG Press office: +44 (0) 207 694 8773
Notes 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 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
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

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 2,800 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.

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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