Slow Increase In Permanent Roles

January’s Report on Jobs published by The Recruitment and Employment Confederation (REC) and KPMG reports an increase in permanent roles, but the rate of growth is easing.

Drawing on original survey data provided by recruitment consultancies December’s Report on Jobs indicated Permanent staff placements continued to rise in January, but the rate of expansion eased to a 20-month low. Temp billings growth moderated slightly to the least marked since October 2014.

Furthermore, the average starting salaries for people placed in permanent jobs has continued to rise, with the rate of growth increasing to a four-month high. Temp pay has also increased, but the latest rise was the weakest in 9 months.

The availability of staff to fill permanent job roles fell further during January. The rate of deterioration was marked, despite easing to the slowest for a year. Temporary/contract staff availability meanwhile fell at the weakest rate in 11 months.

Summary

• Permanent and temporary appointments rise, but rate of growth slows
• Vacancies increase at stronger pace
• Rate of decline in candidate availability moderates
• The slowest rise was signalled for Hotel & Catering workers.

The Regions

The Midlands registered the fastest increase in permanent placements in January, while the slowest expansion was indicated in London.Temp billings rose fastest in the Midlands during January, while the weakest increase was signalled in the South.

Public/Private Sector

Demand for staff remained considerably stronger in the private sector than the public sector during January. The strongest expansion was signalled for private sector permanent employees.

Staff Categories

• Nursing/Medical/Care was the most in-demand permanent staff category during January.
• Engineering took second place in the demand for staff ranking.
• The slowest rise was signalled for Hotel & Catering workers.
• Demand rose for all monitored temporary/contract staff categories during January.
• The strongest rate of expansion was signalled for Nursing/Medical/Care workers.
• Executive/Professional registered the slowest growth.

Report on Jobs Kevin Green-REC

Kevin Green, CEO at REC

“The number of vacancies for permanent and temporary jobs continues to increase rapidly as confident businesses expand their workforces.

“January saw more people secure a new permanent job via a recruiter than in December and the decline in the number of available candidates means competition for skilled workers is driving up pay. With record levels of employment and falling inflation, this means many workers should feel better off in 2015 than they did in 2014.

“It’s encouraging to see these positive trends aren’t focused just in the South East, with all regions reporting rises in people finding jobs and pay increases with the North and the Midlands both reporting robust growth.

“However, the rate of growth in placements is beginning to ease and while the pressure of skills shortages is benefitting new hires via more generous pay offers, in the medium and long term the situation poses real problems for sustainable business growth.

“It’s good to see the significant increase in permanent vacancies in the health and care sector this month. There are a variety of factors that could be contributing to this spike including February being a start date for doctors’ contracts, increased political pressure on trusts to use permanent rather than temporary staff and new guidance on safer staffing ratios. It will be interesting to see how this plays out in the next few months as we know candidates to fill nursing and care jobs are already hard to find.”

Report on Jobs Bernard Brown-KPMG

Bernard Brown, Partner and Head of Business Services at KPMG

“They say good news comes in threes and it certainly seems to be the case for the UK economy.  The past month has seen a rise in employment, a jump in the number of jobs being created and a growing number of firms prepared to pay more to land the best staff.

“However, the good news is only half the story.  Starting salaries may be continuing to rise for the jobs being created today, but this is unsustainable over the long term.  Employers will reach a point where they cannot afford to keep throwing money at candidates, no matter how much their skills are in demand.  We are some way off this happening, but if does, candidates who are in demand today might find it harder to knock doors down, tomorrow.”

Previous Reports

December Report

November Report

October Report

September Report

August Report

July Report

June Report

May Report

April Report

March Report

February Report

January Report

Steve Bebbington
Client Partner
enquiries@jobstheword.co.uk
0207 193 0220

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