Recruitment agencies in the South of England indicated that permanent placements rose for the third month running in October. Moreover, the rate of expansion quickened further to the fastest since March.
October marked a fourth consecutive month of growth in consultants’ billings from temp employment. Furthermore, the rate of increase was the fastest in 12 months.
Permanent salaries and temp pay rates both increase at faster rates
October data marked a rise in salaries for new starters in permanent jobs in the South of England for the fourth month running. Moreover, the rate of growth was the strongest since April 2011. Hourly rates of pay for staff in temporary/contract employment rose for the seventh successive month in October. The rate of wage growth was unchanged from September’s eight-month high.
Phil Cotton, regional chairman for KPMG in the South said: “These latest figures show that increasing numbers of people are finding work across the South and surely indicate that employers are gaining in confidence and laying the foundation stones for economic growth.
“That alone is good news but the acceleration of the number of people taken on by businesses, coupled with the fact that salaries are rising, indicates that we seem to be stepping in the right direction. It may not be leaps and bounds yet, in terms of progress, but these are the largest strides for some time and should not go un-noticed.
“Of course, no one should be under any illusions that a strong jobs market indicates a strong recovery, but confidence is what drives a buoyant market and the hope must be that businesses are ready to recruit for the long-term. Perhaps as we edge towards the end of 2012, businesses really can start to look forward to a better new year.”
Gill Knight, REC Regional Director and chief executive of 1st Choice Recruitment Ltd said: “This is exciting news from the labour market. We’ve seen general growth across the board in a variety of sectors and disciplines.
“The economy can sometimes still feel precarious and although it is hard to forecast I am optimistic for the future.”
Permanent staff availability continues to increase
The number of candidates available to fill permanent job vacancies increased for the second month running in October. That followed a five-month period of declining labour supply – the longest registered in over four years. That said, the Index tracking permanent staff availability fell on the month, indicating a weaker rate of expansion in supply.
The South of England registered rising numbers of candidates available for temporary roles in October, marking a third successive monthly increase. That said, the rate of temp supply growth was slower than in both August and September.
The availability of permanent staff rose across the UK as a whole, in October, but only one English region – the South – posted an increase. The supply of labour for permanent roles in the Midlands was unchanged since September, while mild declines were registered in both London and the North. A similar trend was evident for the supply of temporary workers, with falls registered in both London and the North. The South and the Midlands both posted moderate increases.
