Permanent staff placements in the North of England increased sharply in July, with over 54% of recruitment consultants indicating a higher number of staff placed in permanent positions. Moreover, the rate of expansion was the second-fastest in the survey history. All four monitored English regions registered higher permanent staff placements in July. The fastest increase was recorded in the North, followed by the Midlands, the South and London respectively. Subsequently, permanent staff appointments across the UK as a whole rose sharply and at the quickest rate in 40 months.
July data highlighted the quickest expansion in temporary/contract staff billings across the North in nine years. Temp billings also increased in the three other surveyed regions. The rates of growth were all sharp, with the South and the North sharing the fastest expansion. At the UK level, temp billings grew at the strongest pace since February 2011.
Demand for permanent workers in the North of England rose sharply during July, and at the fastest pace since January. Meanwhile, the rate of growth in demand for temporary staff accelerated to the quickest in almost nine years and was stronger than that seen at the national level.
Permanent staff supply contracts at fastest pace in over eight years
Permanent candidate numbers across the North of England fell for the sixth month running in July, and at the quickest pace in over eight years. Additionally, permanent staff supply fell sharply across the South and London, while a moderate decline was recorded in the Midlands. At the national level, permanent staff availability contracted at the quickest pace since November 2007.
A divergence was seen with regards to temp availability. The supply of temporary/contract staff in the North of England fell sharply in July, and at the strongest rate since April 2005. The supply of temp workers decreased in the South, stagnated in the Midlands and rose in London. At the UK level, temp availability fell solidly and at quickest pace in nearly six years.
Permanent salaries in the North increase at slower, but sharp rate
July data pointed to a further increase in permanent salaries across the North of England. Despite easing to a three-month low, the rate of salary inflation remained sharp overall. Permanent salaries increased across all four English regions during July. The sharpest rise was signalled in the South, followed by the North, London and then the Midlands. At the UK level, the rate of salary inflation was at a 26-month high.
Wages paid to temp/contract workers in the North rose moderately in July, but at the strongest rate in five months, nevertheless. Average temp hourly pay rates also increased in the other three regions, with the South leading the rise for the second consecutive month. The rate of wage growth at the national level was the strongest in five-and-a-half years.
Comments:
Chris Hearld, KPMG’s Leeds office senior partner, comments:
“Continued rising demand for permanent and temporary workers in the North of England further evidences the region’s economic recovery and the appetite of the business community to capitalise on growth opportunities domestically and abroad.
“While the sustained increase in permanent staff placements and temporary worker billings is depleting the North’s pool of available talent, the competition to recruit has intensified. This will be welcome news for people across the region as the resulting boost to salary and wage inflation, which has been subdued during the downturn, helps to offset the pressures of escalating living costs.”
REC chief executive Kevin Green says:
“The jobs market continues to skyrocket with permanent employment and temporary placements increasing. A combination of confidence returning to the UK economy and higher employer demand have contributed to this impressive set of figures.
“Starting salaries accelerated in July and this is an early indicator of increased competition for candidates and skills shortages in a growing number of sectors. In addition to this, hourly rates for temp workers increased.
“We anticipate starting salaries increasing over the coming months as the economy strengthens and competition to secure talent hots up.”
