August Newsletter 2024

 

KEY POINTS FROM SURVEY

NATIONALLY 

Staff appointments continue to fall.
Pay rates up again, albeit at slower rates.
Further uplift in candidate numbers.

THE NORTH

Perm placements down marginally in July.
Temp billings growth sustained but softened.
Pay pressure cools as vacancy growth eases.

 

SALARY GROWTH SUSTAINED, BUT AT SLOWER RATES AS DEMAND FOR STAFF DECLINES


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

“While the Bank of England's easing of interest rates will have provided a much-needed lift to businesses and the investment market, the impact on the economic outlook will not be felt immediately. This latest survey data was gathered before the rate cut, and it gives a subdued picture of the labour market as the downturn moves into its second year.
“Despite the stability of a new Government and easing inflationary pressures, employer confidence to recruit has not yet returned, leading to delays with permanent hiring and even a small contraction in the temporary market as worker contracts are not renewed. In the sectors where employers are still hiring, a lack of skilled talent continues to drive pay growth.
“With forecasts for economic growth improving and potential further interest rate cuts over the coming months there are green shoots of economic recovery. But it’s still early days for this new Government and businesses may be cautious to hit go on their full recruitment and investment strategies until they have heard more from the Chancellor in her Autumn Budget.”

 

Phil Murden, Office Senior Partner for KMPG in Newcastle said:

“It is clear that despite the formation of a new Government in July, businesses across the North are remaining cautious when it comes to their hiring decisions, particularly in regard to permanent staff.
“Businesses in the North of England are therefore looking more to temporary contracts which have seen another uptick and has been helped by those out of work who had previously been on permanent contracts looking for temporary work amidst a challenging jobs market.
“As forecasts for economic growth have improved and with the potential of further interest rates cuts on the horizon, signs are pointing towards an economic recovery which could boost business confidence. However, businesses may be holding off making any major hiring decisions until they see the Chancellor’s plans in her Autumn Budget and can understand how it will impact their plans.”


Kate Shoesmith, Deputy Chief Executive of the REC, said:

“Employers are gradually emerging from the woods, gaining optimism for their businesses and the broader economy.  
“London is setting the pace with a growth in permanent placements signalling the potential for an economic bounce back elsewhere in the country.  
“In the private sector, permanent staff vacancies rose in July and temp vacancies grew for the fourth consecutive month – to the highest levels since October last year.
“Anecdotes suggest growing demand during this big summer of ‘live’ sport, culture and music has led some in hospitality and leisure to shake off their early season caution on hiring.
“The weaker growth in both salaries and temp pay suggests that employers are keeping pay in line with inflation as the Bank of England want and the interest rate cut is welcome. Employers will need more of the same to maintain confidence.
“The new government must grasp this greater sense of optimism with labour market reforms that are both pro-worker and pro-business, and that don’t jeopardise the temporary workforce. Agency work allows for the flexibility many people need to work, and employers need access to these types of workers given ongoing skills shortages. Listening to employer concerns about some of the government’s ‘Make Work Pay’ plan is crucial and will underpin future success via productivity gains and economic growth.”

 

DEMAND FOR STAFF BY SECTOR

Permanent Staff    

July survey data showed a further reduction in permanent staff appointments, stretching the current downturn to 22 months. The rate of contraction was solid, though eased since June. Panelists noted that a fall in vacancies plus an increase in candidate supply had driven the latest reduction in permanent placements.
The latest data showed that permanent placements fell most noticeably in the South of England. In contrast, a modest increase in placements was seen in London.
Half of the sectors covered by the survey showed growth in permanent staff vacancies during July. The strongest increase was for Nursing & Medical Care staff, followed by Engineering. The steepest decline in permanent staff was for IT & Computing.
Nursing/Medical/Care
Engineering
Accounting/Financial
Hotel/Catering
Blue Collar
Construction
Retail
Secretarial/Clerical  
Executive/Professional
IT/Computing

Temporary/Contract Staff  

Recruitment consultants recorded a fractional reduction in temp billings during July to broadly offset the marginal growth recorded in June. Where a decline was registered, this was linked to lower activity at firms and the non-replacement of expiring worker contracts. Where growth was signalled it was attributed in part to cultural events like the European Football Championship.
Temp billings rose in the Midlands and the North of England but fell in London and the South of England.
Temp vacancies were up across seven sub-categories in July, led by Blue Collar and Engineering. The steepest decline in temp vacancies was seen for Executive & Professional workers.
Blue Collar
Engineering
Construction
Hotel & Catering
Nursing/Medical/Care
Secretarial/Clerical
Accounting/Financial
Retail
IT/Computing
Executive/Professional

 

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills   

Accountancy/Financial:   Accounts Assistant, Accounts Payable, Asset Management, Auditors, Bookkeepers, Corporate Finance, Credit Controllers, Finance Assistants, Finance Mangers, Financial Accountants, Financial Controllers, Management Accountants, Part Qualified, Payroll, Tax Accountant, Taxation and Trusts.

Blue Collar:  Drivers, HGV Mechanics, HVAC, LGV Drivers, Rail, Unskilled Labour, Vehicle Technicians and Warehouse.

Construction:  Architectural Techs, Construction Professionals, Drainage Specialists, Quantity Surveyors and Skilled Trades.

Engineering: Civil Engineers, Design Engineers, Electrical Engineers, Electronic Design, Field Service Engineers, Fire & Security Engineers, Hardware Engineers, HVAC Engineers, Mechanical, Senior Electronic Engineers, SMT Engineers, Structural Engineers, Technicians and Vending Engineers.

Executive/ Professional: Business Analysts Development, Commercial Manager, Compliance, Conveyancers, Energy & Renewables, HR, Legal, Management, Marketing, Mid-Senior Management, PR, Procurement, Project Managers, Real Estate, Recruitment Consultants and Valuations.

Hotel/Catering:  Chefs, and Hospitality.

IT/Computing: AI Developers, Automation Testers, Cyber Security, Data Engineers, Data Scientists, Developers, Full Stack Developers, IT, Senior IT Engineers, Software Developers, Software Engineers, Technical Roles, and Technology.

Nursing/Medical /Care: Carers, Consultant Doctors, Doctors, Hearing Aid Dispensers, Nurses, Occupational Therapist, Optometrists, Paramedics, Pharmacy Managers, Physiotherapists, Social Care, and Support Workers.

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

Other:  Account Managers, Buyers, Career Advisors, Commercial, Customer Support, European Languages, Logistics, Property Managers, Public Practice, Sales, Solution Architects, STEM, Supply Chain, and Tele sales.

 

Key Temp Skills    

Accountancy/Financial:  ACCA, Auditors Bookkeepers, CIMA, Credit Controllers, Entry Level Accountancy, Finance, Finance Accountants, Financial Services, Payroll, Purchase Ledger, and Tax & Audit.

Blue Collar:  Coating Inspectors, FLT, HGV, HGC Mechanics, Manufacturing, Production, Semi-Skilled Industrial, Warehouse and Welders.

Construction:   Architectural Techs, Dryliners, PASMA Carpenters, Skilled Trades and Structural Staff.   

Engineering: Civil and Design Engineers, Dimensional Controllers, Electrical Engineers, Mechanical Engineers, Offshore Engineering and Technicians.

Executive/Professional:  Human Resources.

Hotels/Catering:  Chefs and Hospitality.

IT/Computing:  Analysts, Cyber Security, Data Engineers, Developers, IT, Java, Software Developer, Technical Roles, and Technology.

Nursing/Medical/Care:  Carers, Dentists, Hearing Aid Dispensers, Midwife, Nurses, Optometrists, Pediatric Nurses, Pharmacists, Psychologists, Social Care, and Support Workers.  

Secretarial/Clerical:  Administration, HR Administration, Office Manager, Office Support, Receptionists and Transport Administrators.

Other: Commercial, and Customer Service.

 

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

 

Share