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.
Acceleration in growth of staff appointments…
Recruitment consultancies placed greater numbers of people into permanent and temporary roles during July, with rates of expansion accelerating to five and seven month highs respectively.
...buoyed by strengthened demand from employers
Latest data signalled that available job vacancies continued to rise apace in July, with growth quickening to the fastest since January.The private sector remained the principal engine of job creation, although the public sector recorded a solid increase in vacancies.
Record drop in availability of permanent candidates...
Permanent staff availability fell further in July, with the rate of decline accelerating to the sharpest in the survey history. Temporary/contract staff availability meanwhile decreased at the fastest pace since March 1998.
...fuels sharp increase in salaries
Average starting salaries for people placed in permanent jobs continued to rise strongly in July. The rate of increase was only fractionally below June’s survey-record high. Temporary/contract staff pay growth was also marked, despite easing from the 79-month high recorded in June.
Regional and sector variation
Each of the four English regions covered by the survey registered higher permanent placements in July, with the sharpest growth signalled in the South. The Midlands posted the strongest expansion of temp billings during the latest survey period, with growth there considerably faster than in the other regions.
Latest data indicated that private sector demand for staff remained considerable stronger than that in the public sector during July. The strongest overall rise in demand was recorded for private sector permanent employees, where growth was at a five-month high. Construction workers were the most in-demand type of permanent employee during the latest survey period, closely followed by Engineering staff. All categories recorded strong rates of growth.
All nine monitored temporary/contract staffing categories recorded higher demand during July. Mirroring the trend for permanent employees, Construction workers were the most sought-after.
Bernard Brown, Partner and Head of Business Services at KPMG, comments: “For the first time in months we are witnessing churn in the labour market. It seems that employees are finally beginning to wake up to the opportunities available to them, with the rates of growth of both permanent and temporary placements accelerating simultaneously for the first time since the winter."
“Perhaps it’s true that ‘every person hs their price’ because the movement in labour is coinciding with another rise in starting salaries. Just a few months ago employers couldn’t tempt staff to switch roles, but indications are that employees’ caution over change is being replaced with hunger for something new. It’s particularly prevalent in the Midlands; all the indications are that if you want a new job and want an improved salary offer, the central part of the UK is the place to be.”
REC CEO Kevin Green said: “The jobs market continues to go from strength to strength with a further increase in the number of people finding new jobs last month, and both starting salaries and hourly pay rates continuing to grow."
“The UK’s post-recession problem is skill and talent shortages. The economy is going to be constrained by this ongoing talent crisis if employers keep doing business as usual. Hirers need to take on more young people and train and develop their employees like never before. Investing in staff development will help companies attract and retain talent. And our policy makers need to put politics to one side and take a sensible approach to immigration which focuses on helping British businesses get the skilled people they need.”
Commenting on the fact that the construction sector topped the tables for demand for both permanent and agency staff Kevin Green added: “The demand for staff in UK construction shows the industry is rising out of the recession. But without more people skilled, available and willing to take jobs as site managers, joiners and electricians we can’t build the new homes and infrastructure that this country desperately needs.”
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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 email@example.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.
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About Recruitment and Employment Confederation
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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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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.