The number of people placed in permanent jobs by recruitment consultancies in the South of England increased for the eighth month in a row in March. The rate of expansion slowed from February’s four-month high, however, to the weakest since last August.
Phil Cotton, regional chairman for KPMG in the South said:
“After the solid rise in staff placements seen last month, these figures are disappointing. The South saw the job market weaken and the rate of growth for permanent placements slow to the weakest pace since August 2012. Temporary placements fared no better, and fell for a second successive month. It’s a sign that employers who were previously comfortable making long-term financial commitments are now nervous about undertaking any form of people investment.
“Yet no matter how unwelcome it is, with the ink barely dry on news about falling construction and manufacturing output, the latest data should come as no surprise.
“For those staff who are in place the problem remains one of being over-stretched and the longer this goes on, the less productive they will become. Employers clearly recognise that they need to ask some searching questions to solve this issue, but are unlikely to act on what they discover in the near future. Perhaps, once the measures announced in last month’s Budget start to take effect, we may see a positive impact on business confidence, but there is a long way to go and forecasts for a flat GDP for the rest of the year do not bode well.”
Permanent placements rose in three out of four English regions in March, the exception being London. The strongest increase was in the Midlands.
Agencies’ billings from the employment of temporary/contract staff fell for the second successive month in March, albeit at a marginal rate. That followed seven months of growth.
Temporary staff placements increased in the three remaining English regions in March. The Midlands posted the strongest growth.
Supply of candidates for permanent roles increases further
Recruitment consultants in the South of England reported that the availability of candidates to fill permanent job vacancies increased for the third month running in March, the longest sequence of growth in over a year. This contrasted with a fourth successive monthly drop across the UK as a whole.
The South was the only English region to report higher permanent candidate availability in March. The steepest drop in availability was registered in London, and the weakest in the North.
Temporary/contract staff availability increased in March at a rate little-changed from one month previously. The rate of temp supply growth was broadly in line with the long-run survey average, and the South was the only English region to post an increase. London registered a broadly flat trend, while the Midlands posted a steeper decline than the North.
Permanent salaries
Average starting salaries awarded to successful candidates placed in permanent positions increased for the ninth consecutive month in March. The rate of inflation slowed to a three-month low, but remained stronger than the UK average.
Three English regions registered higher starting salaries for permanent staff in March, led by the North. The exception was the Midlands where no change was registered.
Hourly rates of pay for staff in temporary/contract employment rose for the twelfth successive month in March. The pace of growth accelerated from February’s marginal rate, and was the strongest since last November.
Temp pay rates rose in all four English regions, with the strongest gain seen in the Midlands, and the weakest in the North.
John Farmer, Managing Director, Jobseekers Recruitment Services Ltd and REC Regional Director in the South West says:
“The fact that in March recruiters helped more people across the South secure permanent jobs than in the previous month is obviously good news.
“At our agency we have seen particularly encouraging hiring activity from professional services firms.”
