KEY POINTS FROM SURVEY

NATIONALLY 

Further decline in recruitment activity signaled.
Slower increases in starting pay recorded.
Fastest rise in candidate availability for four months.

THE NORTH

Permanent appointments fall at a quicker pace.
Both types of staff supply rise notably in March.
Weakest rate of starting salary inflation in three years.

INCREASED STAFF AVAILABILITY WEIGHS ON PAY GROWTH

Commenting on the latest survey results, Jon Holt, Chief Executive & Senior Partner at KPMG UK, said: 

“Persistent economic uncertainty has led to many business leaders delaying major investment decisions and relying on savings for growth during the first quarter of the year. But they are optimistic about the outlook improving.
“And while March’s survey data indicates ongoing weak demand in the labour market with a sharp rise in candidate availability, relatively low levels of UK unemployment together with falling inflation could pave the way for economic recovery.
“There are still headwinds, but it’s time for the UK economy to get its groove back - and UK businesses will be ready when the Bank of England makes its interest rate cuts. This may not lead to an instant rebound, but confidence to invest will increase, improving demand, and the economic outlook should start moving in the right direction.”

Ian Beaumont, Newcastle Senior Partner for KMPG said:

“Candidate availability has risen again as businesses continue to delay hiring decisions. Candidates that are securing roles are seeing increased starting salaries due to tough competition and businesses trying to access the right skills. We’d expect to see wage increases continue to play out in April as businesses adapt to the increase in National Minimum Wage, but it may also prolong business hesitancy to hire as they face an increase in their cost base.”

Neil Carberry, Chief Executive of the REC, said:

“Economic growth has been side-lined for too long and must be at the heart of this year’s General Election campaign. Today’s data shows the economy in a holding pattern waiting for inflation and interest rates to ease, so that firms can get to investing. The decline in permanent placements has been steady for some months now, with temporary recruitment still robust, if falling back from the record highs of 2022/3. Employers appear to be leaning on temporary work while they are uncertain about the path of the economy.
“The data here should support a decision by the Bank of England’s Monetary Policy Committee to loosen its grip on growth in the near-term future. Pay growth has slowed significantly and is now below the survey’s long-term average for new permanent roles. Some sectors – like the bellwether firms in construction – need a clear signal. In other areas, particularly engineering, demand remains high, emphasising the importance of a new approach to skills from governments across the UK, led by reform of the Apprenticeship Levy. The uptick in the need for blue collar staff may be a sign of consumer confidence starting to return – but it also emphasises again how labour shortages may constrain growth when it returns. A proper industrial strategy, with a meaningful and practical workforce element to it, is long overdue.”

DEMAND FOR STAFF BY SECTOR

Permanent Staff    

Permanent staff appointments in the UK continued to fall in March. This was highlighted by the seasonally adjusted Permanent Placements Index, which posted below the 50.0 no-change mark for an eighteenth successive month. Moreover, the rate of contraction was again marked, and the steepest seen since last November. Panelists noted a drop in the number of available positions, amid recruitment freezes at companies due to an uncertain economic outlook. That said, there were several reports of shortages in the number of suitable candidates to fill positions.

There were reductions in the number of permanent placements across all four monitored English regions in the latest survey period. The sharpest contraction was recorded in the South of England.
In March, eight out of ten broad sectors covered by the survey experienced a drop in demand for permanent vacancies, the exceptions being Engineering and Blue Collar. The sharpest fall in demand was recorded in the Retail category, followed by IT & Computing.

Engineering
Blue Collar
Accounting/Financial
Secretarial/Clerical   
Executive/Professional
Nursing/Medical/Care
Hotel/Catering
Construction
IT/Computing  
Retail

Temporary/Contract Staff  

March data revealed a further contraction in temp billings. Overall, it was the fifth successive month in which a reduction in billings from the employment of short-term staff has been registered, and the latest fall was also the most marked since July 2020. Amid evidence of budget restrictions at clients, panelists reported a lack of demand for temp workers.
The downturn in temporary billings was common across all four English regions, with the steepest decline recorded for London.
Temporary vacancies increased for Blue Collar, Engineering and Hotels & Catering workers in March, with solid growth rates recorded in each instance. Like permanent vacancies, the steepest downturn in demand for temporary staff was seen for Retail.

Blue Collar
Engineering
Hotel & Catering
Secretarial/Clerical
Accounting/Financial
Nursing/Medical/Care
Executive/Professional
IT/Computing
Construction
Retail

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills   

Accountancy/Financial:   ACA, Accountants, Accounts Assistant, Auditors, Bookkeepers, Credit Controllers, Estimators, Finance Managers, Financial Analysts, Financial Planners, Management Accountants, Paraplanners, Part Qualified, Payroll, Purchase Ledger, Tax & Audit, and Taxation.

Blue Collar:  Automotive, Drivers, HGV, HVAC, LGV, Machine Operators, Metal Fabricators, Refrigeration, Security Guards, Site Managers, and Welders.

Construction:  Architecture, and Quantity Surveyors.

Engineering: Design Engineers, Draughts persons, Electrical Engineers, Fire & Security Engineers, Maintenance Engineers, Mechanical Engineers, Production Engineers, Structural Engineers, System Engineers, Technicians, and Toolroom Supervisors.   

Executive/ Professional:  Business Development, Commercial Manager, Energy Renewables, HR, Legal, Management, Marketing, Mid-Management, PR, Recruitment Consultants, and Specialist Functions.

Hotel/Catering:  Chefs, and Hospitality.

IT/Computing: AI Developers, CAD, Cyber Security, DDaT, Developers, IT, IT Infrastructure, LLM Engineers, Software Architects, Software Engineers, and Technical Roles.

Nursing/Medical /Care: Carers, Dentists, Doctors, Healthcare, Communications, Hearing Aid Dispensers, Mental Health, Nurses, Occupational Therapist, Optometrists, Paramedics, Pharmacy Managers, Physiotherapists, Psychologists, and Social Care Workers.

Secretarial/ Clerical:  Administration, Office Support, Sales Administration and Secretaries.

Other:  Account Managers, Buyers, Career Advisors, Customer Service, Data Analysts, European Languages, FMCG Production, Insurance Specialists, Life Sciences, Public Practice, Quality Control, Sales, and Tele sales.

Key Temp Skills    

Accountancy/Financial:  Accountants, Account Assistant, Accounts Payable, Auditors, Bookkeepers, Credit Controllers, Finance, Financial Accountant, Payroll, and Purchase Ledger.

Blue Collar:  Assembly Operative, CNC Operators, Electricians, FLT, Manufacturing, Security Guards, Trades, Welders, and Warehouse.

Construction:   Architectural Technicians, Joiners, Labourers, Multi-Trades, Sheet Metal Workers, and SPMT Operators.   

Engineering: Design Engineers, MCR Engineers, Production Engineers, Service Engineers, Systems Engineers, and Technical Administrators.
Executive/Professional:  Communications Manager, Energy & Renewables.

Hotels/Catering:  Chefs, and Hospitality.

IT/Computing:  Analysts, Automation Testers, Cyber Security, Data Engineers, Developers, IT, Linux, Software Design, Software Engineers, and Technical Roles.

Nursing/Medical/Care:  Dentists, Hearing Aid Dispensers, Nurses, Optometrists, Pharmacists and Social Care workers.  

Secretarial/Clerical:  Administration, Receptionists and Transport Administration.

Other: Call Centre, Customer Service, Languages, Quality Control, School Administration and Teachers.

KINGSTON RECRUITMENT LTD Call us on – 01482 228891 or simply contact us via email at enquiries@kingstonrecruitment.co.uk 

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