The Report on Jobs: North contains original data from the survey of recruitment and employment consultants in the North of England. 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.
Permanent staff placements stagnate during April
April data indicated that the number of staff placed in permanent positions across the North of England was unchanged from March. The latest reading ended a seven-month period of growth. Permanent staff placements at the UK level expanded solidly and at a faster pace than that seen last month.
Temporary/contract staff billings across the North of England rose during April, marking a nine-month sequence of expansion. The overall growth rate was robust and faster than in March. At the national level, temp appointments fell for the first time since July last year, but only slightly.
Three out of four surveyed English regions signalled higher permanent staff placements, with the fastest growth seen in the Midlands, followed by the South and London respectively. Temp appointments, meanwhile, decreased in London and the South, but rose across the Midlands.
Demand for both permanent and temporary staff in the North rose in April, with the rates of expansion moderate and sharp respectively. That said, the rates of expansion eased from March in both cases. Growth in demand for permanent workers across the UK as whole was little-changed from March, but the pace of rise in demand for temporary staff eased.
Strongest deterioration in availability of permanent staff since December
The availability of permanent workers in the North of England fell for the third month running in April. The overall rate of decline was moderate and the sharpest since December 2012. At the UK level, the supply of candidates for permanent positions increased for the first time since November, albeit fractionally.
Latest data pointed to a rise in the supply of temp staff across the North. This was the second increase registered in 2013 so far. Nevertheless, the rate of growth was only slight. At the UK level, the availability of temporary/contract staff rose for the fourth successive month. The pace of expansion was slight and little-changed from March.
The supply of staff for permanent roles fell in the South, but grew in London and the Midlands. In contrast, the supply of temp workers increased in the South, but contracted in London and the Midlands.
Rates of increase in salaries paid to both permanent and contract workers ease
Continuing the trend that has been observed since March 2012, permanent salaries in the North of England increased during April. Despite being solid, the rate of wage inflation was the slowest in three months. At the UK level, average permanent salaries also rose. The overall pace of increase was, however, moderate and the slowest in five months.
Recruitment consultants in the North of England indicated that salaries paid to temp workers rose during April. However, the overall rate of salary growth was slight and the slowest since last November. Across the UK as a whole, average hourly pay rates increased for the third successive month. That said, the rate of increase was moderate and had eased from March’s one-year peak.
Average salaries paid to newly appointed permanent staff increased in the South and the Midlands, but fell in London. Meanwhile, temp pay rates increased in all four English regions. The fastest rise was signalled in the South, followed by London.
Comments:
Chris Hearld, KPMG’s Yorkshire senior partner, comments:
“The halt that April’s data brought to seven months of job growth in the North highlights the fragile nature of the economic recovery that has recently been hinted at.
“Thankfully, we can look to more positive national news on recruitment which suggests that the wider economy might be further along the growth curve than the local market.
“It is to be hoped therefore that last month’s flatlining proves to be nothing more serious than an April shower in the north.”
REC CEO Kevin Green says:
“Demand in the economy is returning, slowly but surely. Businesses are feeling more confident, hence steady levels of people being placed into permanent jobs and rising in starting salaries across the north of England.
“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.
“All the feedback from recruiters is that employers intend to continue to increase their use of flexible staffing in the months ahead.”
