Record rise in starting salaries as permanent candidate availability plummets
8 July 2014
The number of staff available to fill permanent roles in the UK plummeted by the sharpest amount in 17 years driving starting salaries up at a record pace, according to the latest Recruitment & Employment Confederation (REC) and KPMG Report on Jobs published today.
Tue, 8 Jul 2014The number of staff available to fill permanent roles in the UK plummeted by the sharpest amount in 17 years driving starting salaries up at a record pace, according to the latest Recruitment & Employment Confederation (REC) and KPMG Report on Jobs published today.
The REC-KPMG guide to the UK labour market, which draws on original survey data provided by recruitment consultancies, said the recruitment figures represent the biggest drop since the survey began in October 1997.
Permanent salaries rose last month at a record rate and salaries have now risen for a 26th consecutive month.
Bernard Brown, partner and head of business services at KPMG, says: “Once again employers seem ready to ‘splash the cash’ in what appears to be a desperate attempt to lure skilled staff from competitors.
“Yet despite offering starting salaries at a rate that has not been seen during the survey’s 17-year lifetime, it is clear that candidates are not easily swayed.”
Temporary and contract staff, meanwhile, also recorded a sharp deterioration in availability, with June’s drop the greatest seen since March 1998. Moreover, hourly pay rates rose at the sharpest rate since November 2007.
The rate of demand in the private sector is comfortably outstripping that seen in the public sector.
As a result companies have sought to fill vacancies with permanent placements increasing during June with the sharpest increase seen in the Midlands, closely followed by the South.
Temporary and contract staff billings in contrast increased at the sharpest pace for five months, with the Midlands leading the way followed by the South. The North saw a stronger increase in temp billings, but London recorded a slower rate of expansion.
REC director of policy Tom Hadley adds: “The message to UK businesses is that it is crucial to sharpen up hiring procedures in an increasingly candidate driven market. The message to government is that we need to reform the visa system to satisfy immediate demand for skills, while stepping up measures to boost the UK skills base for the long term.”
Engineering was the best performing sector in the demand for staff ‘league table’ during June.
Construction also continued its recent strong performance, recording a considerable rate of growth. Hotel & catering was the weakest performer.
Engineering workers were also the most in-demand type of temporary staff during June, followed by blue collar and then construction workers.
Demand for temporary staff is rising at stronger rates across all categories when compared to 12 months ago, with the exception of nursing/medical/care.
The REC-KPMG guide to the UK labour market, which draws on original survey data provided by recruitment consultancies, said the recruitment figures represent the biggest drop since the survey began in October 1997.
Permanent salaries rose last month at a record rate and salaries have now risen for a 26th consecutive month.
Bernard Brown, partner and head of business services at KPMG, says: “Once again employers seem ready to ‘splash the cash’ in what appears to be a desperate attempt to lure skilled staff from competitors.
“Yet despite offering starting salaries at a rate that has not been seen during the survey’s 17-year lifetime, it is clear that candidates are not easily swayed.”
Temporary and contract staff, meanwhile, also recorded a sharp deterioration in availability, with June’s drop the greatest seen since March 1998. Moreover, hourly pay rates rose at the sharpest rate since November 2007.
The rate of demand in the private sector is comfortably outstripping that seen in the public sector.
As a result companies have sought to fill vacancies with permanent placements increasing during June with the sharpest increase seen in the Midlands, closely followed by the South.
Temporary and contract staff billings in contrast increased at the sharpest pace for five months, with the Midlands leading the way followed by the South. The North saw a stronger increase in temp billings, but London recorded a slower rate of expansion.
REC director of policy Tom Hadley adds: “The message to UK businesses is that it is crucial to sharpen up hiring procedures in an increasingly candidate driven market. The message to government is that we need to reform the visa system to satisfy immediate demand for skills, while stepping up measures to boost the UK skills base for the long term.”
Engineering was the best performing sector in the demand for staff ‘league table’ during June.
Construction also continued its recent strong performance, recording a considerable rate of growth. Hotel & catering was the weakest performer.
Engineering workers were also the most in-demand type of temporary staff during June, followed by blue collar and then construction workers.
Demand for temporary staff is rising at stronger rates across all categories when compared to 12 months ago, with the exception of nursing/medical/care.
