August 2019 Newsletter

KEY POINTS FROM SURVEY

Nationally

Permanent staff appointments fall for fifth month running
Temp billings growth edges down to 75-month low
Staff availability declines at softest pace for two-and-a-half years

FOR THE NORTH OF ENGLAND

Permanent staff appointments rise markedly.
Temp billings decline further
Temp candidates supply increases for the first time since September 2013

UNCERTAIN OUTLOOK CONTINUES TO DAMPEN RECRUITMENT ACTIVITY DURING JULY

Commenting on the latest survey results, James Stewart, Vice Chair at KMPG, said:

“Businesses continue to take a cautious approach to hiring as Brexit and economic uncertainty linger.

“Permanent staff appointments have fallen for the fifth month in a row, while overall demand remains lacklustre as firms delay recruitment decisions. Uncertainty is also impacting the supply of labour, as people are choosing to sit tight until the outlook is clearer.

With the UK unemployment rate already at a four decade low, candidate shortages in the labour market continued to push up rates of starting pay. This will likely cause concern for businesses looking to control their costs and recruit the right people for the long term. Ultimately, businesses will be eager to see a Brexit breakthrough in Westminster to help re-establish market confidence on hiring and investment.”

Neil Carberry, Recruitment & Employment Confederation chief executive, said:

“Our flexible jobs market remains a key strength for the UK as we navigate an uncertain time. While we are seeing a concerning weaker trend in permanent placements bed in, the rate of change is slow, employment rates are high and starting salaries are growing.

The new government should be focused on delivering the negotiated exit from the EU businesses need, but also on avoiding damaging changes that will undermine the strength of our job market. An improved approach to immigration, reforms to the apprenticeship levy and avoiding hasty changes to contractor tax rules should be top of the list.

Recruiters are an invaluable source of local and industry expertise to businesses looking to hire new staff. The REC is helping its members to do this with new, local workforce intelligence data.”

DEMAND FOR STAFF BY SECTOR

Permanent Staff

UK recruitment consultancies registered a further reduction in the number of permanent staff appointments during July. That said, the pace of contraction eased to a marginal pace that was the joint slowest in the current five month sequence of decline.

As has been the case throughout 2019 to date, Brexit related uncertainty was a key factor weighing on hiring activity, as well as a lack of suitably skilled candidates. Permanent staff appointments have now fallen in six of the past seven months.

Data split by English region indicated that permanent placements declined in London, the South of England and the Midlands.  The North of England meanwhile registered an increase for the fifth month in a row.

The steepest increase in demand for permanent staff was once again seen for IT & Computing. The only sectors to see reduced vacancies were Construction and Retail. That said, trends weakened across all monitored sectors compared to a year ago.

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

Temporary/Contract Staff

Billings received from the recruitment of temporary/contract workers rose again in July. That said, the rate of expansion was the slowest seen since the current period of growth began in May 2013 and marginal. Recruitment consultancies that noted higher temp billings generally linked this to firm demand for short-term workers. However, there were also reports that scheduled economic conditions and fewer than anticipated vacancies had weighed on growth.

The South of England and London both registered higher temp billings, while falls were seen in the Midlands and the North of England.

Temporary staff demand rose across seven of the ten monitored job categories in July, led by Hotel & Catering. Retail saw the steepest overall reduction in short-term vacancies, while demand also fell in Executive/Professional and Construction.

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

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills 

Accountancy/Financial: Accountants, Auditors, Book Keepers, Credit Controllers, Estimators, Finance, Finance Directors, Payroll, Pension Admin, Risk, Taxation.

Blue Collar: Fork Lift Drivers, LGV Drivers, Manufacturing Ops, Mechanics, Production Staff, Shipping, Warehouse.

Construction: Construction, Quantity Surveyors.

Engineering: Civil Engineers, Design Engineers, Engineers, Hardware Engineers, Maintenance Engineers, Mechanical Engineers, Senior Electronic Engineers, Technicians.

Executive/ Professional: Building Analysts, Compliance, Digital Marketing, Law, Management, Marketing, Portal Fee, PR, Recruitment Consultants, Scientists.

Hotel/Catering: Chefs, Hospitality, Kitchen Porters.

IT/Computing: CAD, Cisco Networking, Cyber, Data Professionals, Developers, Digital, Gaming, IT, Media, Programmers, Software Engineers, Technical Sales, Technology.

Nursing/Medical /Care: Chemists, Doctors, Health Professionals, Nurses.

Retail: None noted.

Secretarial/Clerical: Administration, Office Staff, Receptionist’s.


Other: B2B Sales, Buyers, Call Centre, Commercial, Customer Service, Designers, Ecologists, Graduates, Logistics, Sales, Semi-skilled workers, Skilled workers, Telecomms, Telesales.

Key Temp Skills

Accountancy/Financial: Accountants, Auditors, Book Keepers, Credit Controllers, Finance, Payroll, Pension Admin.

Blue Collar: Blue Collar, Cleaners, Decorators, Drivers, Electricians, FLT Drivers, HGV Drivers, Industrial, LVG Drivers, Manufacturing, Packers, Plumbers, Production, Warehouse Operatives, Welders.

Construction: Construction Workers.

Engineering: Design Engineers, Engineers.
Executive/ Professional: Architectural Technicians, Human Resources, Law, Marketing, Portal Fee, PR, Project Managers, Scientists, Surveyors.

Hotels/Catering: Baristas, Catering, Chefs, Hospitality, Kitchen Porters.

IT/Computing: C#, Developers, Digital, IT, Technology.

Nursing/Medical/Care: Carers, Doctors, Health Care Assistants, Health Professionals, Nurses.

Secretarial/Clerical: Administration, Audio Secretaries, Office Staff, Receptionist’s, Secretaries.

Other: Buyers, Call Centre, Customer Service, Graduates, Sales, Skilled Workers, Teachers, Telesales, Unskilled Workers.

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