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.
Slower rise in permanent placements
The number of people placed in permanent jobs by recruitment consultancies in the South of England increased for the sixth month in a row in January. The rate of expansion slowed sharply, however, to a marginal pace that was the weakest since last August.
Growth of permanent placements rose in all four English regions in January. The North registered the strongest increase, and the South the weakest.
Temp billings rise at solid, albeit weaker, rate
Agencies’ billings from the employment of temporary/contract staff increased for the seventh month running in January. The pace of growth moderated from December’s 22-month record, but was broadly in line with the survey’s historic average.
Temporary staff placements also increased in all four regions in January. Growth was strongest in the North, followed by London. The Midlands posted only a marginal increase.
Slight rise in permanent staff availability during January
The availability of candidates to fill permanent job vacancies in the South of England was reported to have increased in January. That compared with a fall in December and no change in November. The rate of supply growth was only marginal, but contrasted with a fall across the UK as a whole.
Permanent staff availability rose in the North and South of England in January, but declined sharply in London. The Midlands registered a marginal contraction in permanent candidate supply.
Further solid increase in supply of temporary candidates
Temporary/contract staff availability grew at a solid rate little-changed from that seen in December. The rate of supply growth was faster than the long-run survey average, and that seen for the UK as a whole in January.
Temp candidate supply increased in three English regions at the start of 2013, with the South and the Midlands registering the joint-fastest rate of growth. A marginal decline was seen in the North.
Permanent salaries
Average starting salaries awarded to successful candidates placed in permanent positions increased for the seventh month running in January. The rate of inflation accelerated further from November’s weak pace, and was solid overall. It was also greater than that seen across the UK as a whole.
The UK registered contrasting regional trends with regard to salary growth for new permanent staff in January. The South and North both recorded solid increases, while starting salaries were unchanged in the Midlands and declined slightly in London.
Temp/contract pay rates
Hourly rates of pay for staff in temporary/contract employment rose at the start of 2013, extending the current sequence of increases to ten months. That said, the latest rise was moderate and the weakest since August.
A similar trend was evident for starting pay rates for temporary staff. Increases in the South and the North contrasted with falls in London and the Midlands.
Comments:
Phil Cotton, regional chairman for KPMG in the South, said:
“Amid the doom and gloom caused by predictions of slow growth, the figures for January should give employers and employees plenty of reasons to be cheerful.
“Demand for permanent staff continued, and we saw a sixth consecutive rise in the number of new staff taken on by businesses across the region. However, the rise was the weakest recorded since August last year, hinting at an undercurrent of caution that exists amongst employers.
“Starting salaries in the South rose again in January, and recorded a solid increase greater than that seen across the UK as a whole, meaning that employees who may have been too nervous to change jobs in recent months, might be tempted by the financial benefits of a fresh challenge.
“This is a trend that, if it continues, will benefit the region as a whole. After all, higher salaries may mean that consumers feel more able to loosen their purse strings and spend on goods and services, giving a welcome injection of cash into the economy.”
REC director of policy and professional services Tom Hadley, said:
“The war for talent has begun. January saw a rise in starting salaries continuing a seven month trend of increases. The rise is caused by continued growth in permanent vacancies over several years paired with weaker levels of candidate availability. This is good news for workers but also highlights the need to address the current ‘skills disconnect’ which presents a major barrier to growth in key sectors of our economy.
“Skills shortages in whole sectors like engineering and IT and for particular roles like sales is spurring competition for qualified staff. Employers are realising that to secure the talent they need they have to offer more attractive salaries.”
