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.
Slower rise in permanent placements…
June data signalled a further increase in permanent staff placements. Although remaining stronger than the survey’s long-run average, the rate of expansion eased to the slowest in 25 months.
...while temp billings growth also eases
The rate of growth in temporary/contract staff billings moderated to an eight-month low in June, although remained marked overall.
Candidate availability remains tight…
Recruitment consultants reported that a key factor weighing on growth of staff appointments was shortages of qualified candidates. Although easing slightly since May, rates of decline in both permanent and temporary candidate availability remained considerable.
…fuelling further pay increases
The rate of permanent salary inflation remained strong and well above the survey’s historical trend in June, despite easing to a four-month low. Temp pay growth moderated to the slowest in 14 months, but again remained marked overall.
Regional and sector variation
Permanent placements rose across all four English regions during June. The Midlands posted the strongest rate of growth, while the slowest rise was signalled in the South.
Temp billings growth was strongest in the Midlands during the latest survey period, with London posting the weakest expansion.
Private sector jobs continued to register stronger demand growth than public sector roles during June. Private sector permanent staff again saw the fastest rise overall.
Engineering was the most in-demand category for permanent staff during the latest survey period, followed by executive/professional. The slowest growth of vacancies was signalled for hotel & catering workers.
Demand rose for all nine monitored temporary/contract staff categories during June. The sharpest increase was signalled for nursing/medical/care workers, while the slowest expansion was recorded for executive/professional staff.
Bernard Brown, Partner at KPMG, comments: “The number of skilled workers looking for new roles fell considerably in June, stifling hiring activity and leaving the job market feeling somewhat lethargic.
“This growing skills shortage is cross sector and cross discipline: recruiters are struggling to fill vacancies for everything from software engineers to sales. The lack of qualified candidates is also driving up salaries, with the right individual able to command a significant premium from businesses anxious to secure their skills and experience.
“The primary concern remains the impact this unwanted pause in recruitment will have on the performance and productivity of UK plc; without the right staff it will be very difficult for businesses to keep pace with demand, let alone achieve their long term growth potential.”
REC Director of Policy Tom Hadley, says: “Businesses are really struggling to find the people they need. Vacancies continue to rise, candidate availability has fallen steeply and we’re seeing this affect the amount of placements being made each month. Starting salaries are being pushed up as demand exceeds supply, but the concern is that business growth is being constrained.
“The government’s restrictions on visas for skilled professionals aren’t helping matters, and the prospect of new salary thresholds for tier 2 visas could substantially damage the competitiveness and productivity of UK businesses. Large scale infrastructure projects such as railway upgrades could also be held back if we haven’t got the right people to fill roles.
“We urge the Migration Advisory Committee to take account of up-to-the-minute data like Report on Jobs to inform its recommendations to government.”
Full reports and historical data from the Report on Jobs are available by subscription. Please contact email@example.com.
- ENDS -
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 2013/14, 1,155,932 people were employed in either temporary or contract work through consultancies and 634,608 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.
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 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. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
About the Recruitment & Employment Confederation
Dorset House, First Floor, 27-45 Stamford Street, London, SE1 9NT. Tel: 020 7009 2100 Website: www.rec.uk.com.
The Recruitment & Employment Confederation (REC) is the professional body for the UK’s £28.7 billion recruitment industry. The REC represents 3,349 corporate members who have branches across all regions of the UK. In addition, the REC represents 5,759 individual members within the Institute of Recruitment Professionals (IRP). All members must abide by a code of professional practice. Above all, the REC is committed to raising standards and highlighting excellence throughout the industry.
Markit is a leading global diversified provider of financial information services. We provide products that enhance transparency, reduce risk and improve operational efficiency. Our customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators and insurance companies. Founded in 2003, we employ over 3,500 people in 10 countries. Markit shares are listed on Nasdaq under the symbol MRKT. For more information, please see www.markit.com.
© Copyright in the Report on Jobs, including the Report on Jobs survey data, is owned by Markit. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without Markit’s prior consent. Markit shall not have any liability, duty or obligation for or relating to the content or information (“data”) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. Markit is a registered trade mark of Markit Group Limited.
Zoe Sheppard, KPMG Press Office
T: +44 (0)117 905 4337
M: +44 (0)7770 737 994
KPMG Press office: +44 (0)207 694 8773
Follow us on twitter: @kpmguk
Liz Banks / Alasdair Reynolds, REC Press Office
T: +44 (0)207 009 2157 / 2192
Supported by Speed Communications – Kerry Grove
T: +44 (0)117 906 4517
Markit Economics (technical/data queries):
Jack Kennedy, Senior Economist
T: +44 (0)1491 461087
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.