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.
Strong increase in permanent placements
April data signalled a ninth straight monthly increase in the number of people placed in permanent jobs by recruitment consultancies in the South of England. Having slowed to a marginal pace in March, the rate of growth picked up sharply in April to the fastest since last October. It was also stronger than the long-run survey average.
Permanent placements rose in three out of four English regions in April, the exception being the North. The strongest increase was again seen in the Midlands.
Agencies’ billings from the employment of temporary/contract staff in the South fell for the third consecutive month in April, although the rate of decline remained marginal.
Temporary staff placements fell in one other English region in April – London. The strongest rise was indicated in the North.
Supply of candidates for permanent roles falls
The South of England’s recruitment consultants reported that the availability of candidates to fill permanent job vacancies declined for the first time in 2013 to date in April. Though modest, the rate of contraction was the strongest since July 2012, and contrasted with a flat trend across the UK as a whole.
Permanent candidate availability increased in two English regions in April, with marginal growth registered in both London and the Midlands. The North posted a slightly steeper fall than the South.
Survey data indicated a further robust increase in the supply of temporary/contract staff in the South in April. The current sequence of growth in temp availability now stretches to nine months. Moreover, the rate of growth in the latest period was the fastest since last September. The supply of temp candidates increased modestly in the North, while solid falls were registered in London and the Midlands.
Permanent salaries rise further
Average starting salaries awarded to successful candidates placed in permanent positions in the South of England increased for the tenth month running in April. Moreover, the rate of salary growth accelerated to a three-month high, and was stronger than the UK average.
Three English regions registered solid growth rates for salaries paid to new permanent staff in April. The fastest increase was seen in the Midlands. London registered a marginal fall.
April data signalled a thirteenth successive monthly increase in hourly rates of pay for staff in temporary/contract employment in the South. The pace of growth eased since March, however, and was weaker than the average over the current sequence.
Temp pay rates rose in all four English regions, but at modest rates in all cases.
Phil Cotton, regional chairman for KPMG in the South said:
“After a sluggish performance in March, the South job market sprang back in April to post the strongest rise in permanent placements seen in six months. Salaries also rose again, which will hopefully boost candidate confidence and in turn drive momentum through the wider job market.
“Yet these positive signs should not be taken as a signal that we are out of the woods. The data suggests that optimism is lower when temporary roles are considered and there are also still too many inconsistencies across the UK to hint at recovery.
“What businesses need is an indication that the economy is turning a corner towards sustainable recovery. News that the threat of a triple dip recession has passed for the time being will help, but more positive performances are needed to underpin a long term recovery in the job market.”
REC CEO Kevin Green says:
“Demand in the economy is returning, slowly but surely. Businesses are feeling more confident, hence the growth in permanent jobs and rise in starting salaries. It really is one in the eye for the naysayers who talk down our labour market and dismiss improving employment figures as being ‘the wrong kind of jobs’.
“Recruiters are reporting a renewed sense of purpose from their clients, with employers making hiring decisions more quickly than before. Highly skilled jobs like engineering and IT are still big growth areas, and the reports of shortages of people to fill sales vacancies show that companies are gearing up for increases in business investment and consumer spending.
“We think that the drop in temp placements in this month’s report is more down to the calendar than the economy with many contracts expiring at the end of the financial year. All the feedback from recruiters is that employers have no intention of cutting back on their use of flexible staffing in the months ahead.”
