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.
Growth of permanent placements slows, but remains solid
Recruitment agencies in the South of England indicated that permanent placements rose for the fourth month running in November, but at a slower pace. The rate of growth was solid, but weaker than the UK average during the latest month.
Consultants’ billings from temp employment rose for the fifth consecutive month. Moreover, the rate of growth accelerated to the fastest in 20 months, and a pace that was stronger than the UK average.
Permanent staff placements rose across all four English regions in November, the second broad-based growth in successive months. The strongest increase was again registered in the North, and the weakest in London. Temporary appointments growth was also universal, with sharp increases seen in all four English regions. The most substantial rise was seen in the Midlands.
Permanent staff availability unchanged since October
The number of candidates available to fill permanent job vacancies was unchanged in November. The availability of permanent candidates has risen only twice in the past nine months. The flat picture in the South broadly matched that seen across the UK as a whole.
The South of England’s recruitment consultants reported rising numbers of candidates available for temporary roles in November. That extended the current sequence of increasing supply to four months. The rate of growth was moderate, and little-changed from October.
Only one English region – The Midlands – posted growth in the supply of candidates for permanent positions in November. Declines were seen in both the North and London. Temp supply growth was indicated in the South and London, and the strength of the increases more than offset marginal declines in both the North and the Midlands.
Permanent salaries rise only marginally
November data signalled only a marginal rise in the salaries of new starters in permanent roles. That followed the strongest increase for a year-and-a-half in October. The near-stagnation of salaries in the South contrasted with a slightly faster increase across the UK as a whole.
Hourly rates of pay for staff in temporary/contract employment rose in November at a moderate rate little-changed from those seen in September and October. This contrasted with only a marginal increase on average across the UK.
Salaries for new starters in permanent positions rose in all English regions except London, where no change was registered. The strongest growth was signalled in the Midlands. The South recorded the best temp pay growth of all English regions in November, albeit a moderate overall increase. A marginal fall was registered in London, while fractional increases were seen in the Midlands and the North.
Comments:
John Farmer, Managing Director, Jobseekers Recruitment Services Ltd and REC Regional Director in the South West says:
“There are some real positive signs for both temporary and permanent jobs. In our business we have seen growth in both since last month and it’s up on this time last year.
“The biggest issue for us is still the inertia in the candidate market and the calibre of some of the new ‘graduate level’ job market entrants.”
Phil Cotton, regional chairman for KPMG in the South said: “Twelve months ago employment prospects were bleak. Today, however, the negative outlook has been replaced by cautious optimism as employers in the South gradually gain confidence to make decisions about the vacancies they want to fill.
“November’s figures paint a picture of a steadily improving job market in the South as the number of staff taken on by businesses increased for a fourth consecutive month.
“Perhaps the Government’s long-term strategy for jobs is beginning to bear fruit? With the latest figures hinting that robust demand in business is offsetting weak demand across the public sector, we might just be seeing signs of resilience. But before anyone gets the bunting out, the good news must be seen in the context of a fragile economy that remains susceptible to future shocks. Recovery is by no means certain, but the steady growth in placements we have witnessed over the last quarter is welcome news for the South economy.”
