Recruitment consultancies in the South of England reported that permanent placements increased for the fifth month running in April. The pace of growth eased for the first time since the start of the year, however.
Growth at the start of the second quarter was weaker than the average seen over Q1. Agencies’ billings from the employment of temporary/contract staff continued to fall in April. Moreover, the pace of decline was the fastest since May 2009.
The South of England was the second-fastest growing English region in terms of permanent appointment growth in April, but posted the steepest drop in temp billings. The Midlands posted the strongest increase in permanent placements of the monitored regions, followed by the South of England. The Midlands also recorded the fastest rise in temporary billings, with the North of England the only other region to record an expansion.
Availability of permanent staff falls in April
The number of candidates available to fill permanent job vacancies in the South of England fell from one month previously in April. It was only the second time in a year that permanent candidates have fallen in number, and the rate of decline was the strongest since December 2010. The availability of permanent staff across the UK as a whole also fell, albeit only marginally. Growth of temp availability in the South of England was registered for the forty-ninth month in succession in April. The rate of expansion was unchanged from March’s weak pace, however, and well below the average for the current growth sequence. Temp candidate availability also rose at a weaker pace than the UK average.
April figures on staff availability suggested that the South of England registered the strongest fall in candidate supply of all regions, and the slowest rise in temp availability. The North was the only region to post a rise in permanent candidate numbers, with the sharpest fall recorded in the South. All four regions registered higher temporary candidate numbers, led by the Midlands and the North.
Permanent salaries rise for fourth month running
The salaries of new starters in permanent jobs in the South of England rose for the fourth month running in April. The rate of growth remained modest, but contrasted with a marginal decline across the UK as a whole. Hourly rates of pay for staff in temporary/contract employment rose in April compared with one month previously. The rate of growth was the fastest in three months, but still weaker than the survey’s long-run average. The South saw a stronger increase in temp pay rates than the UK trend at the start of Q2.
The South recorded sustained permanent salary growth in April, with the rate of increase bettered only slightly in the North. Temp pay growth in the South outpaced the UK average. The South and the North posted rises in permanent salaries, while they fell in London and the Midlands. Only London posted a reduction in temporary staff pay rates, with the Midlands recording the sharpest inflation, followed by the South.
Comments:
Phil Cotton, regional chairman for KPMG in the South said:
“The job market mirrors the frustration of April showers spilling into May. At first glance it is encouraging to see permanent job opportunities continue to improve, but there has also been a sharper decline in temporary placements.
“One ray of sunshine amidst the gloom is the news that salaries for permanent jobs in the South increased again in April, which contrasted with a marginal decline across the UK as a whole.
“With the recent economic data in the UK and continued global economic uncertainties the situation is unlikely to improve. Unemployment rates are likely to continue to rise in the short term. The question, now, is whether we start to push the 3m mark.”
Kevin Green, Chief Executive of the Recruitment and Employment Confederation says:
““This month’s figures show growth in permanent jobs in the South but at the slowest rate since January. This highlights the fragile nature of the UK jobs market at present. Employer and consumer confidence are increasing and we anticipate more private sector jobs being created in the second half of the year. Temporary staffing is declining as employers take on more permanent staff and come to terms with the Agency Workers Regulations, however, temps will continue to be a valuable resource for many businesses.
“During 2011, employers made do with the staff they had, trying to exploit any additional capacity in their existing workforce. Having maximised the growth they could achieve in this way, confidence has grown sufficiently for organisations to make the positive decision to take on more staff.
“This growth is fragile though, and reports of a double dip recession and crises in the Eurozone could have a negative impact on that confidence.”
