The Report on Jobs: South contains original data from the survey of recruitment and employment consultants in the South of England (excluding London). The report is designed to provide a comprehensive and up-to-date guide to labour market trends and the data are directly comparable with the UK Report on Jobs.
Permanent placements growth gains momentum
The South of England’s recruitment agencies indicated that permanent placements rose for the second month running in September, and at a faster rate. That said, growth remained weaker than the long-run survey average. Consultants’ billings from temp employment increased during September, in line with the trend shown throughout the third quarter. Moreover, the rate of expansion was the strongest since November 2011.
Permanent staff placements in the South rose in September, compared with a marginal fall across the UK as a whole. Permanent staff appointments also increased in the Midlands and the North, but fell in London. Temporary appointments increased in all surveyed regions except in London, with the Midlands posting a marked expansion. The South posted a solid increase, while only a modest rise was indicated in the North.
Stronger rises in both salaries and temp pay
New starters in permanent jobs in the South of England registered a rise in salaries for the third consecutive month in September. Furthermore, the rate of growth improved to the fastest since May.. Hourly rates of pay for staff in temporary/contract employment rose at a solid rate in September, following recent marginal increases. The latest increase was the fastest since January.
Permanent salaries increased in the South and the North, albeit at only a marginal pace in the latter. The Midlands registered broadly no change, while London posted a decline. Temporary pay rose solidly in the South and at an even quicker rate in the Midlands. The North posted only a marginal increase, while temporary pay rates in London fell.
Phil Cotton, regional chairman for KPMG in the South said: “It must be hugely encouraging for job seekers in the South to see that employers across the region are taking on more staff and salaries for both permanent and temporary work are increasing.. Indeed, it would be easy to assume that the corner is being turned.
“However, the jobs market cannot be viewed in isolation as any sustainable improvement in employment remains dependent on the growth of the economy as a whole. Whilst some parts of the country may be showing signs of recovery, others are lagging behind and until an upward trajectory is seen across the whole of the UK, the jobs market will remain fragile with warnings to ‘handle with care’.
“If we are to see sustained growth in employment demand, we need to get growth back into the economy itself. That is why the picture remains fragile, and a jobs recovery is by no means assured.”
Permanent staff availability rebounds strongly
The number of candidates available to fill permanent job vacancies increased at the fastest rate in nearly three years in September. That followed a five-month period of declining labour supply – the longest registered in over four years. The month-on-month rise in the index tracking permanent staff availability equalled the largest on record (December 2008). The South of England registered rising numbers of candidates available for temporary roles in September, building on August’s recovery. Moreover, the pace of temp supply growth was the fastest since January.
Strong increases in permanent candidate numbers were noted in the South of England and in London. The South registered the sharper increase, and the greatest in nearly three years. Meanwhile, the Midlands and North both recorded falls. Temporary candidate availability increased solidly in London and the South, but fell in the Midlands. Meanwhile, the North posted a modest increase.
Recruitment and Employment Confederation chief executive Kevin Green said: “This month’s figures show that the temporary labour market has bouncebackability.
“The resilience of the UK labour market in the face of what official figures class as a double dip recession continues to be remarkable. This increase in the use of temps for the second month in a row could be a sign of optimism among employers, and that they are gearing up for future growth. It certainly puts pay to any idea that changes to Agency Worker Regulations last year dissuaded British businesses from using temps as a vital component of their workforce. Temporary staff are an efficient, flexible way for businesses to increase their workforce and grow their businesses out of recession.
“The data provides encouraging signs for the economy, with demand for staff continuing to increase and candidate availability rising. However, we know that confidence is fragile and a big external shock could derail us from this promising course.”
