The number of people placed in permanent jobs by recruitment consultancies in the South of England increased for the third successive month in February. Moreover, the rate of growth was the fastest since last August, and stronger than the long-run series average. Agencies’ billings from the employment of temporary/contract staff fell for the second time in three months in February. That said, the pace of contraction was only marginal.
The South of England outperformed the UK average in permanent appointment growth in February, and the slight fall in temp billings was broadly similar to the UK trend. London was the only monitored region to see a fall in the appointment of permanent staff, with marked increases recorded in the Midlands, the North and the South of England. Temp billings meanwhile fell throughout England, decreasing fastest overall in London.
Availability of permanent staff rebounds
The number of candidates available to fill permanent job vacancies in the South of England rose at the fastest rate since September 2011. That followed a decline in January, the first since March 2011. Growth of temp availability remained solid in February, despite easing slightly from January’s 14-month record. Data for the first two months of 2012 have indicated stronger rises in temp availability than those seen in each month of 2011.
February figures on staff availability suggested that the increase in candidate supply for permanent positions in the South of England was in line with the UK average, In contrast, availability of temps grew at the slowest pace among all four English regions.
Data showed that the availability of both permanent and contract staff rose fastest overall in the North of England. Recruitment consultancies in the Midlands and the South of England meanwhile recorded the weakest improvements in permanent and temporary staff availability respectively.
Permanent salaries rise further
Average starting salaries awarded to people placed in permanent jobs in the South of England rose for the second month running in February. Moreover, the rate of growth accelerated slightly from January’s marginal pace, and was the strongest in four months. This contrasted with a slight fall across the UK as a whole. Hourly rates of pay for staff in temporary/contract employment increased for the thirteenth month running in February. However, the rate of growth was the slowest for a year.
The South was one of only two English regions to record permanent salary growth in February, the other being the Midlands. In contrast, temporary pay rates rose at the weakest rate of all four English regions. Permanent starting salaries in the UK fell in February, as rises in the Midlands and the South of England were offset by declines in both London and the North of England. In contrast, there was a broad-based increase in contractors’ hourly rates, with temps in the Midlands (by some distance) seeing the steepest monthly rise in wages.
Comments:
Phil Cotton, regional chairman for KPMG in the South said:
“These figures are positive news and show that businesses in the South of England are increasingly prepared to commit to hiring permanent staff to meet their employment needs. This demonstrates a sense of increased confidence from businesses and their willingness to make a long term investment in their workforce.
“It is interesting to see that the number of permanent vacancies in the region increased at the fastest pace for three months, but we must be mindful that this does not show the other end of the spectrum. Some companies in the South are still making redundancies, and the number of people looking for permanent jobs rose at the fastest rate since September 2011, proving conditions for job seekers remain very competitive.”
John Farmer, the REC’s Regional Director for the south west and Managing Director of Jobseekers Recruitment Ltd, says:
“The feedback from employers and recruiters in the region confirms some really positive signs on the permanent recruitment front. In the South West, major projects such as Hinckley Point C are helping to drive hiring activity.
“Although candidate availability as a whole is on the rise, one of the challenges we face is finding job-seekers with the skills and competencies that employers are looking for. Addressing this ‘skills mismatch’ must be a priority and is something that Local Enterprise Partnerships can help to drive in co-operation with local employers and recruiters.
“Temporary work is still fairly static, although there are positive signs that some hirers, who have been conspicuous by their absence for much of the last three years, are now dipping their toes back in the market.”
