The report, released this morning, reveals the number of people placed into permanent job roles fell for the ninth month running in November, albeit at the weakest rate since July. The reduction in permanent staff hiring was widely associated with heightened uncertainty around the outlook, while growth in temp billings was only marginal.

The November findings saw the slowest increase in overall vacancies since the current upturn began in October 2009. The decline in the headline index was largely driven by a softer rise in demand for permanent staff, as temp vacancies expanded at a quicker pace but rates of expansion remained historically subdued across both categories.

Latest data showed signs of a general easing in pay pressures midway in this final quarter of 2019. Permanent starting salaries increased at the slowest rate since December 2016, while temp wage inflation eased to a three-year low. Notably, both of the pay indicators fell below their long-run averages.

Recruiters pointed to people becoming increasingly reluctant to seek new roles due to uncertainty around the upcoming election and Brexit. Overall, candidate numbers fell at their fastest rate for five months, with permanent staff supply declining at a sharper pace than that seen for temp workers.

Across the regions, permanent placements declined in the South of England and the Midlands, but rose in the North of England and London. Meanwhile, the Midlands saw the quickest increase in temp billings. The South of England was the only monitored English region to register a decline in November.

Nursing/medical/care saw the steepest increase in demand for permanent staff in November, followed by IT & computing and blue collar. Of the three monitored sectors to witness a decrease in vacancies, the retail sector saw the quickest rate of contraction. Temporary staff demand increased across six of the 10 sectors monitored. The sharpest rise in vacancies was signalled for nursing/medical/care, while construction saw a marked fall in demand for temp staff.

REC CEO Neil Carberry said: “Today’s figures show exactly why this election needs to focus on work. The jobs market is still strong, but uncertainty is taking its toll. Permanent placements have now fallen for nine months in a row and vacancies growth is at its weakest for a decade. Any incoming government must move quickly to boost business confidence and implement policies that will help companies and individuals to make great work happen.

“With that in mind, it was good to hear Sajid Javid say that a Conservative government would review the planned changes to IR35 if they win the general election, alongside similar commitments from Labour and the Liberal Democrats. Everyone should pay the right amount of tax – and that must mean thinking again and stopping 2020 implementation. 

“Contractors and the self-employed are a vital part of the UK’s flexible labour market, and current implementation plans risk rewarding those who avoid tax while punishing hundreds of thousands of compliant contractors and agencies. It is essential that these tax changes are only brought in when it’s clear they can be implemented effectively, with proper regulation of umbrella companies and effective enforcement.”

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