Availability of permanent candidates declines at fastest rate for 10 years
7 March 2014
The availability of permanent staff continued to fall in February, with the rate of decline in availability accelerating to its sharpest for 10 years, according to the latest KPMG/Recruitment & Employment Confederation (REC) Report on Jobs.
Fri, Mar 2014
The availability of permanent staff continued to fall in February, with the rate of decline in availability accelerating to its sharpest for 10 years, according to the latest KPMG/Recruitment & Employment Confederation (REC) Report on Jobs.
Around a third (33.8%) of recruitment consultants surveyed reported a drop in candidate availability as against 16.8% who reported a rise. All four English regions reported lower candidate availability for permanent roles.
The increased difficulty in finding candidates came as demand for permanent staff continued to grow, with the rate of increase in demand only slightly below January’s 15-year high.
For permanent roles, engineering remained at the top of the demand for staff ‘league table’ in February. Construction and nursing/medical/care also registered strong rates of growth. The slowest rise in demand was indicated for blue-collar workers.
In another sign of the strength of the permanent market, placements grew at their fastest rate since March 2010. Growth of permanent placements was strongest in the North of England, while London posted the slowest (but still marked) increase.
The growth in temporary vacancies continued, as signalled by the temp Jobs Index of 65.1, albeit this is slighty lower than the 67.2 recorded for permanent jobs.
Any index above 50 shows a stronger demand than a month ago.
Among temporary/contract staff, the highest demand was for nursing, medical and care staff, followed by blue collar, secretarial and clerical.
Kevin Green, chief executive officer at the Recruitment & Employment Confederation (REC), says: “This month’s figures show the second highest ever results in permanent placements since Report on Jobs began in 1997. The positive trend of rising vacancies continues and this is supported by our JobsOutlook data on employers’ hiring intentions that shows businesses will be taking on more workers in 2014 as their confidence grows.
“However the number of candidates available to fill vacancies continues to fall and this is becoming a business critical issue in highly skilled roles. Recruiters are struggling to source the managerial and technical skills that employers require and this will only get worse as the economy strengthens.”
Bernard Brow, partner and head of business services at KPMG, says: “With permanent appointments rising at the strongest rate for almost four years, employers appear determined to show they are secure enough to make long-term commitments. Candidates, on the other hand, are less certain, preferring to stay put than advance their careers in a new environment.
“Yet individuals’ nervousness may be misplaced. Temporary placements are falling and with starting salaries rising at their highest rate for almost seven years, all the indications are that any concerns over job security may be unwarranted.”
Andrew Hunter, co-founder of job search engine Adzuna, adds: “If advertised vacancies continue to grow at the current rate, we anticipate the number of available jobs easily breaking through the 800,000 barrier on average in February.”
In February recruiter.co.uk reported that job vacancies in the three months to the end of January were at their highest for 15 years.
Around a third (33.8%) of recruitment consultants surveyed reported a drop in candidate availability as against 16.8% who reported a rise. All four English regions reported lower candidate availability for permanent roles.
The increased difficulty in finding candidates came as demand for permanent staff continued to grow, with the rate of increase in demand only slightly below January’s 15-year high.
For permanent roles, engineering remained at the top of the demand for staff ‘league table’ in February. Construction and nursing/medical/care also registered strong rates of growth. The slowest rise in demand was indicated for blue-collar workers.
In another sign of the strength of the permanent market, placements grew at their fastest rate since March 2010. Growth of permanent placements was strongest in the North of England, while London posted the slowest (but still marked) increase.
The growth in temporary vacancies continued, as signalled by the temp Jobs Index of 65.1, albeit this is slighty lower than the 67.2 recorded for permanent jobs.
Any index above 50 shows a stronger demand than a month ago.
Among temporary/contract staff, the highest demand was for nursing, medical and care staff, followed by blue collar, secretarial and clerical.
Kevin Green, chief executive officer at the Recruitment & Employment Confederation (REC), says: “This month’s figures show the second highest ever results in permanent placements since Report on Jobs began in 1997. The positive trend of rising vacancies continues and this is supported by our JobsOutlook data on employers’ hiring intentions that shows businesses will be taking on more workers in 2014 as their confidence grows.
“However the number of candidates available to fill vacancies continues to fall and this is becoming a business critical issue in highly skilled roles. Recruiters are struggling to source the managerial and technical skills that employers require and this will only get worse as the economy strengthens.”
Bernard Brow, partner and head of business services at KPMG, says: “With permanent appointments rising at the strongest rate for almost four years, employers appear determined to show they are secure enough to make long-term commitments. Candidates, on the other hand, are less certain, preferring to stay put than advance their careers in a new environment.
“Yet individuals’ nervousness may be misplaced. Temporary placements are falling and with starting salaries rising at their highest rate for almost seven years, all the indications are that any concerns over job security may be unwarranted.”
Andrew Hunter, co-founder of job search engine Adzuna, adds: “If advertised vacancies continue to grow at the current rate, we anticipate the number of available jobs easily breaking through the 800,000 barrier on average in February.”
In February recruiter.co.uk reported that job vacancies in the three months to the end of January were at their highest for 15 years.
