Labour market continues to tighten, says REC/KPMG Report on Jobs
8 May 2014
May saw the sharpest decline in staff availability for permanent positions for 10 years, according to the Recruitment & Employment Confederation (REC)/KPMG Report on Jobs.
Thu, 8 May 2014May saw the sharpest decline in staff availability for permanent positions for 10 years, according to the Recruitment & Employment Confederation (REC)/KPMG Report on Jobs.
In further evidence that the labour market is tightening as the UK recovery gains momentum, the availability of temporary staff saw its steepest decline since 2000.
Yesterday recruiter.co.uk reported evidence from reed.co.uk that showed the permanent jobs market was in robust health.
Key points:
• Permanent placements growth accelerates, but temp billings rise at slower pace
• Decline in candidate availability intensifies
• Fastest permanent salary growth since July 2007
REC chief executive officer Kevin Green says: “This dearth of skilled workers means that many organisations will need to improve their candidate experience and also look overseas to find people. The government must do more to support businesses by ensuring that the visa process does not act as a barrier to growth.”
Permanent staff placements rose at a strong and accelerated rate in April, although the rate of expansion remained below February’s recent peak. Temp billings also rose at a robust pace, albeit the lowest since June 2013.
Underpinning higher staff appointments was a further increase in vacancy levels during April. The rate of growth in demand for staff was broadly unchanged from March’s elevated pace.
Growth of permanent salaries accelerated further in April. The latest increase was the most marked since July 2007. Temporary staff pay increased at a solid pace that was sharper than in the preceding month.
Bernard Brown, partner and head of business services at KPMG, says: “With starting salaries rising at their fastest rate for almost seven years and temporary placements growth slowing down, people would be forgiven for thinking that the time is right to change jobs
“Yet the truth is far different. The number of people putting themselves on the jobs market has dropped at its sharpest rate since 2004. It is this shortage of skilled labour that is forcing employers to tempt talent with improved pay, rather than new-found confidence.”
He went on to say that as the economy grows and the pound strengthens, this trend could reverse in the near future. “When that happens, candidates are more likely to be looking for a new challenge, meaning that employers will have to focus equally on both retention and recruitment.”
Regional and sector variation
The Midlands and the North posted the strongest increases in placements during the latest survey period, while the South saw the slowest growth.
Temp billings growth was strongest in the Midlands, while the North posted the slowest rise.
Demand for staff continued to rise at a particularly sharp pace in the private sector during April, with permanent employees registering a more marked increase than temporary workers.
Public sector demand for staff continued to grow at a solid pace, with temporary vacancies showing a faster rise than permanent roles.
Engineering remained the most in-demand category for permanent staff in April. Strong rates of expansion were signalled across the board, with Nursing/Medical/Care taking second place in the demand for staff ‘league table’.
Mirroring the trend seen for permanent staff, Engineering was the most sought-after category for temporary/contract workers in the latest month, followed by Nursing/Medical/Care. All other staffing types saw strong rates of growth in job vacancies.
In further evidence that the labour market is tightening as the UK recovery gains momentum, the availability of temporary staff saw its steepest decline since 2000.
Yesterday recruiter.co.uk reported evidence from reed.co.uk that showed the permanent jobs market was in robust health.
Key points:
• Permanent placements growth accelerates, but temp billings rise at slower pace
• Decline in candidate availability intensifies
• Fastest permanent salary growth since July 2007
REC chief executive officer Kevin Green says: “This dearth of skilled workers means that many organisations will need to improve their candidate experience and also look overseas to find people. The government must do more to support businesses by ensuring that the visa process does not act as a barrier to growth.”
Permanent staff placements rose at a strong and accelerated rate in April, although the rate of expansion remained below February’s recent peak. Temp billings also rose at a robust pace, albeit the lowest since June 2013.
Underpinning higher staff appointments was a further increase in vacancy levels during April. The rate of growth in demand for staff was broadly unchanged from March’s elevated pace.
Growth of permanent salaries accelerated further in April. The latest increase was the most marked since July 2007. Temporary staff pay increased at a solid pace that was sharper than in the preceding month.
Bernard Brown, partner and head of business services at KPMG, says: “With starting salaries rising at their fastest rate for almost seven years and temporary placements growth slowing down, people would be forgiven for thinking that the time is right to change jobs
“Yet the truth is far different. The number of people putting themselves on the jobs market has dropped at its sharpest rate since 2004. It is this shortage of skilled labour that is forcing employers to tempt talent with improved pay, rather than new-found confidence.”
He went on to say that as the economy grows and the pound strengthens, this trend could reverse in the near future. “When that happens, candidates are more likely to be looking for a new challenge, meaning that employers will have to focus equally on both retention and recruitment.”
Regional and sector variation
The Midlands and the North posted the strongest increases in placements during the latest survey period, while the South saw the slowest growth.
Temp billings growth was strongest in the Midlands, while the North posted the slowest rise.
Demand for staff continued to rise at a particularly sharp pace in the private sector during April, with permanent employees registering a more marked increase than temporary workers.
Public sector demand for staff continued to grow at a solid pace, with temporary vacancies showing a faster rise than permanent roles.
Engineering remained the most in-demand category for permanent staff in April. Strong rates of expansion were signalled across the board, with Nursing/Medical/Care taking second place in the demand for staff ‘league table’.
Mirroring the trend seen for permanent staff, Engineering was the most sought-after category for temporary/contract workers in the latest month, followed by Nursing/Medical/Care. All other staffing types saw strong rates of growth in job vacancies.
