Permanent Staff Rises At Slowest Rate

October’s Report on Jobs published by The Recruitment and Employment Confederation (REC) and KPMG reports permanent staff placements continued to rise, but at the slowest rate since November last year.

Drawing on original survey data provided by recruitment consultancies October’s Report on Jobs indicated a number of vacancies available to candidates seeking work also increased further in October, although the rate of growth eased to a 10-month low.

Furthermore, recruitment consultants reported that candidate availability remained tight in October. The rate of decline in permanent staff availability was marked, despite easing slightly to the slowest since May, while temp availability decreased at the fastest pace in three months.

The data also shown a slower growth of staff pay. Permanent staff salaries increased at the weakest rate since February, while temporary/contract staff pay growth eased to a five-month low.

Summary

• Permanent appointments growth still strong in October, despite easing
• Pay growth moderates
• Staff availability continues to decline markedly

The Regions

Permanent placements increased fastest in the Midlands during October, while the slowest growth was reported in the North. As was the case for permanent placements, the Midlands led the way in terms of temp billings growth during October. The South posted the slowest rise.

Public/Private Sector

October data showed that growth of demand for staff remained considerable stronger in the private sector than the public sector. The sharpest increase overall was indicated for private sector permanent workers.

Staff Categories

• Engineering remained the most in-demand category for permanent staff, ahead of IT & Computing.
• The slowest rise in demand remained for Hotel & Catering workers
• Nursing/Medical/Care remained top of the demand for staff ‘league table’ for short-term roles in October, closely followed by Engineering.
• Construction workers saw the least marked increase in demand for their services.

Report on Jobs Kevin Green-REC

Kevin Green, CEO at REC

“The good news about our jobs market continues, with two solid years of growth in the number of people finding new permanent jobs via recruiters. The number of vacancies is continuing to rise, with businesses in all sectors of the economy looking to hire more staff.

“But we can’t be complacent. The government needs to help business take on staff by doing all it can to protect employers from shocks and uncertainty. More specific advice on how far claims for holiday pay can be backdated and ensuring businesses are not subjected to a barrage of new cases in light of this week’s judgement would be a good start.

“If we want everyone to benefit from the economic recovery, and wage growth to accelerate we can’t keep making it more expensive to employ people.

“Ongoing candidate shortages are a major barrier to growth. Despite the political sensitivities around immigration the reality is that we need to bring in more skilled workers not fewer.”

Report on Jobs Bernard Brown-KPMG

Bernard Brown, Partner and Head of Business Services at KPMG

“The slowdown in salary growth comes as little surprise, with many businesses trying to balance the books in the wake of reduced growth and output in some sectors, uncertainty over our relationship with Europe in others, and a reticence to pay over the odds when the right skills seem to be lacking.

“Inflation may be easing, but with many people either struggling on low incomes or still behind the earnings curve because of years of pay freezes, it is something employers will have to consider very carefully.  The ruling, earlier this week, on holiday and overtime pay will ensure this is an issue that will rumble on for some time.”

Previous Reports

September Report
August Report

July Report

June Report
May Report
April Report
March Report
February Report
January Report

Mike Sandiford
Head of Partnerships
enquiries@jobstheword.co.uk
0207 193 9931

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