The number of people placed in permanent jobs by recruitment consultancies in the South of England rose for the thirteenth month running in August. Moreover, the rate of growth accelerated further to a 44-month record, and was one of the fastest registered in the 16-year survey history.
Permanent placements rose sharply in all four English regions. The North posted the fastest rate of growth, followed by the South. London registered the slowest rise among the four regions.
Agency temp billings in the South of England grew for the fourth month running in August. The pace of expansion remained sharp, despite easing slightly from July’s 152-month record.
Permanent salaries increase at marked pace
August data indicated upward pressures on starting salaries for permanent staff in the South of England. Salaries paid to permanent staff rose at the strongest rate since October 2007, and at a faster pace than the UK average.
Permanent starting salaries increased across all four English regions. The South continued to post the greatest increase in salaries, while the North registered the weakest rise.
Temp pay rates in the South of England rose for the seventeenth consecutive month in August. The rate of wage growth slowed from July’s 68-month record, but remained sharp nonetheless. Furthermore, the pace of increase was broadly in line with the UK average during the latest period.
Phil Cotton, regional chairman for KPMG in the South said:
“With retail sales up and the OECD sharply increasing its growth forecast for the UK economy, it’s no surprise to see that confidence amongst businesses in the South is gaining momentum.
“Demand for staff in the region has increased at its sharpest rate for over three years and whilst the thirst for permanent employees remains strong, the real success story revolves around the ‘return to work’ prospects offered by the surge in temporary and short-term placements. With these roles seeing their fastest rise since 2000, it means opportunities to get back into the labour market for people with other commitments are becoming more of a reality than a wish.
“Organisations in the South are also paying more for staff, and salaries in the region have increased at a rate faster than the UK average. Increasing the pounds in candidates’ pockets may sound like good news; it is – but employers must make sure they are paying the right price for the right person and not simply racing to fill a vacancy.”
Marginal decline in permanent staff availability
The availability of candidates for permanent roles in the South of England declined for the second month running in August, the first back-to-back fall in a year. That said, the rate of contraction was only marginal, contrasting with a sharp decline across the UK labour market as a whole.
Permanent candidate availability declined in three other English regions in August, with the fastest decline registered in the Midlands.
August data indicated a rise in the supply of labour for temporary roles, following the first decline in a year during July. In contrast, temp supply across the UK as a whole decreased further.
The supply of temp candidates decreased in the Midlands and London in August, with the former posting a slightly steeper rate of decline. Meanwhile, temp supply was little-changed since July in the North.
REC chief executive Kevin Green said:
“August was an extraordinary month for the jobs market, with temp placements hitting a three year high. There is more good news for all workers with pay rates for temps rising and starting salaries for permanent staff also increasing.
“Vacancies have hit a high and fluidity is returning to the jobs market, so over the coming months we expect to see a noticeable improvement in official employment figures. The major issue now is the worrying lack of candidates to fill the jobs being advertised.”
He added: “This month’s figures should be celebrated and efforts should be focused on addressing the skills gap rather than picking holes in flexible working.”
