KEY POINTS FROM SURVEY
Permanent placements fall for first time in two-and-a-half years
Vacancy growth edges down to 27 month low
Sharper fall in candidate availability leads to further increases in starting pay
FOR THE NORTH OF ENGLAND
First decline in permanent placements for 77 months
Faster falls in both permanent and temp availability
Staff shortages lead to further rises in pay
PERMANENT STAFF APPOINTMENTS DECLINE AT START OF 2019 AMID UNCERTAIN OUTLOOK
Commenting on the latest survey results, James Stewart, Vice Chair at KMPG, said:
“With Brexit just days away now, it’s definitely a nervous time for recruiters. January marked the first fall in permanent staff appointment since the referendum and we’ve seen a sharp decline in the number of candidates entering the jobs market. This is pushing up starting salaries at historically strong rates.
“Both employers and employees are in “wait and see mode” now and there is little reason to believe the brakes will come off the jobs markets before we find out what sort of Brexit the UK is about to experience.
“The majority of sectors across the UK economy are now more cautious and hiring more slowly than they were 12 months ago. Indeed, the retail sector is actually shedding permanent staff.
“Nationally the number of permanent staff appointments has fallen considerably in the north region, Midlands region and London. The exception is the Southern region where the number of permanent staff appointments continues to grow, albeit more slowly.”
Neil Carberry, Recruitment & Employment Confederation chief executive, said:
“This is the first month since 2016 where permanent placement numbers have dropped, with weaker – but still positive – performance for temporary roles and the lowest rate of vacancy growth for over two years. But we should be careful not to overreact – employment rates are high and the performance of our labour market overall is still strong. That said, the survey results are a sharp reminder to politicians in Westminster and in Brussels of the need to provide businesses with clarity about the path ahead, so they can invest with confidence.”
DEMAND FOR STAFF BY SECTOR
Recruitment consultancies signalled a renewed fall in the number of people placed into permanent jobs at the start of 2019. Though only slight, it was the first time that permanent staff appointments had declined since July 2016. There were a number of reports that companies were becoming increasingly hesitant to take on new staff to uncertainty surrounding Brexit. At the same time, panellists also indicated that shortages of candidates had dampened placement numbers.
Data split by English regions showed that permanent placements fell in the Midlands, the North of England and London, with modest growth evident in the South of England.
The steepest increase in permanent staff demand was seen for Accounting & Financial, followed by Engineering and IT & Computing. The only sector to register lower permanent job vacancies was Retail.
Recruitment consultancies signalled a much slower increase in billings received from the employment of temporary/contract staff during January. Notably the pace of expansion was the joint-weakest recorded since the current period of expansion began in May 2013 (on a par with September 2015). Panellists that registered higher temp billings generally commented on increased activity at clients. However, some recruitment agencies mentioned that uncertainty regarding the outlook and a general slowdown in market conditions had dampened the overall rate of growth.
Temp billings increased in the Midlands and the South of England, but fell in the North of England and London.
Hotel & Catering topped the league table for demand for temporary staff in January, closely followed by Nursing/Medical/Care. Vacancies also rose across all other job sectors, with the weakest expansion see in Retail.
Hotel & Catering
SKILLS IN SHORT SUPPLY
Key Permanent Staff Skills
Accountancy/Financial: Accountants, Accounts, Auditors, Commercial Cost Managers, Credit Controllers, Estimators, Finance, Financial Services, Fund Accounting, Insurance Business Analysis, Investment, Payroll, Pensions Admin, Purchase Ledger, Risk, Tax, Treasury, Underwriters.
Blue Collar: Drivers, Forklift Drivers, LGV Drivers, Manufacturing, Production Managers, Semi-Skilled Workers, Skilled Workers, Vehicle Technicians, Welders.
Construction: Architects Technicians, Construction Sales, Construction Workers, Quantity Surveyors.
Engineering: Automation Engineers, Design Engineers, Development Engineers, Industrial Engineers, Mechanical Engineers, Senior Electronic Engineers, Technicians.
Executive/ Professional: Advertising, Compliance, Development Managers, Digital Marketing, Lab Technicians, Law, Legal Secretaries, Litigation Executives, Marketing, Portal Fee Earners, Project Managers, Recruitment Consultants, Scientists.
Hotel/Catering: Chefs, Head Chefs, Sous Chefs.
IT/Computing: .Net, Analysts, C#, CAD, CNC, Data Analysts, DevOps, Digital, Gaming, Infrastructure Analysts, IT, IT Managers, Java, Oracle Fusion, Programme Managers, Software Developers, Software Engineers, Technology.
Nursing/Medical /Care: Care Workers, Childcare, Dispensing Opticians, Healthcare Assistants, Hearing Aid Dispensers, Home Carers, Nurses, Optometrists, Support Workers, Therapist.
Secretarial/Clerical: Clerical, Receptionists.
Other: Buyers, Customer Services, Logistics, Managers, Sales, Security, SEN Teaching Assistants, Teachers, Technical Sales, Telesales.
Key Temporary Staff Skills
Accountancy/Financial: Accounts Clerks, Accountants, Auditors, Banking, Commercial Cost Managers, Credit Controllers, Finance, Payroll, Pension Admin, Risk, Treasury.
Blue Collar: Blue Collar, Drivers, FLT Drivers, HGV Drivers, LGV Drivers, Shipping, Site Managers, Skilled Workers, Unskilled Workers, Warehouse Operatives.
Construction: Architecture, Construction Workers.
Engineering: Commissioning Engineers, Design Engineers, Mechanical Engineers.
Executive/ Professional: Compliance, Development Managers, Lab Technicians, Law, Legal, Legal Secretaries, Litigation, Marketing, Portal Fee Earners, Scientists.
Hotels/Catering: Catering, Chefs, Food Service Assistant, Hospitality.
IT/Computing: Analysts, BA Analysts, CAD, Cyber Security, Data Analysts, Developers, DevOps, Digital, Full Stack Developers, Gaming, Infrastructure Analysts, IT, IT Programmers, Java, PHP Developers, PowerPoint, Python, Ruby, Software Developers, Technical Designers, Technology.
Nursing/Medical/Care: Care Workers, Childcare, HADs, Healthcare Assistants, Home Care Workers, Optometrists, Social Workers, Support Workers.
Secretarial/Clerical: Administration, Clerical, Receptionist’s, Secretaries.
Other: Buyers, Customer Service, General Assistants, Health and Safety Managers, Logistics, Sales.
Even though all of us here at Kingston Recruitment are working from home, we are still very much working together and as a team!
We hope everyone is taking care