KEY POINTS FROM SURVEY
Renewed drop in permanent placements amid reintroduction of lockdown measures
Uncertainty drives further marked rise in temp billings
Total demand for staff declines solidly
FOR THE NORTH OF ENGLAND
Marked decline in permanent staff appointments, temp billings growth eases
Fresh decline in demand for permanent staff
Labour supply increases at substantially slower pace
PERMANENT STAFF RECRUITMENT FALLS SHARPLY IN JANUARY
Commenting on the latest survey results, James Stewart, Vice Chair at KMPG, said:
“The latest national lockdown has knocked business confidence, evident by a renewed drop in permanent appointments as businesses put recruitment on hold.
“There has been an uptick in short-term vacancies, but these are mainly in blue collar and the medical response industry, indicating that they are filling a temporary need for staff rather than pointing to long-term job opportunities.
“However, there is cause for optimism as businesses carefully monitor the vaccine rollout and look forward to the Budget next month. It gives the Government the opportunity to further help the recovery in jobs and revive the UK’s productivity growth."
Neil Carberry, Recruitment & Employment Confederation chief executive, said:
“Economic uncertainty is weighing on employers’ minds even where they see potential for their own firm to grow, so it’s no surprise that temporary work is leading the jobs recovery. This emphasises again how important flexible forms of work are to helping businesses and public services react to the pandemic. Temporary work is also helping people get back into jobs more quickly after the recent spike in redundancy numbers.
“With the vaccination programme making progress, it’s likely that a path out of the pandemic is emerging. As that happens, we expect a strong recovery in permanent hiring. But businesses need Government help to bridge these last few months. Support for strained corporate cash flows is key. Extending furlough and reducing its cost to firms, supporting family business directors left out of support packages so far, and puttig back repayments of deferred VAT and CBILs loans until the recovery would all help enormously.”
DEMAND FOR STAFF BY SECTOR
After rising slightly in December, permanent placements declined during January. Permanent staff appointments have now decreased in three of the past four months. The latest reduction was the sharpest recorded since last June, albeit much softer than the falls seen at the start of the COVID-19 pandemic. Recruiters frequently mentioned that the recent rise in virus cases, renewed national lockdown and weaker market confidence had driven the drop in permanent placements.
Data broken down by region indicated that permanent staff appointments fell across all four English regions monitored by the survey. Rates of
decline were marked across the board, with the Midlands noting the steepest contraction.
January data revealed that demand for permanent staff fell in six of the ten categories monitored by the survey, led by Hotel & Catering and Retail. Of the areas that noted higher vacancies, Nursing/Medical/Care registered the steepest increase.
Billings received from the employment of short-term staff across the UK rose for the sixth successive month in January. Though sharp, the rate of increase was the softest seen over this period. Panellists often commented that increased market uncertainty due to the resurgence of COVID-19 had created a preference for short-term workers over permanent staff among clients. There were also mentions of pandemic-related roles being filled, including healthcare workers and cleaners.
Temp billings expanded across all four monitored English regions bar London. The Midlands registered the quickest upturn overall..
Short-term vacancies rose across half of the monitored job categories at the start of 2021. Nursing/Medical/Care and Blue Collar noted the fastest rates of expansion. Meanwhile, Hotel &
Catering languished at the bottom of the rankings.
Hotel & Catering
SKILLS IN SHORT SUPPLY
Key Permanent Staff Skills
Accountancy/Financial: Accountants, Auditors, Book Keepers, Credit Controllers, Estimators, Finance, Financial Directors, Para Planners, Payroll, Pensions Admin, Risk and Taxation.
Blue Collar: Drivers, FLT Drivers, LGV Drivers, Production, Warehouse.
Construction: Architectural Technicians, Quantity Surveyors.
Engineering: CCTV Engineers, Hardware Engineers, HVAC Engineers, Mechanical Engineers, Technicians.
Executive/ Professional: Compliance, Conveyancing, Digital Marketing, HR,
Legal, Legal Secretarial, Management, Marketing, Portal Fee, Project Managers.
Hotel/Catering: None recorded.
IT/Computing: Agile Project Managers, Analysts, Azure, Bi, CAD, Cyber, Data Scientists, Developers, Digital, IT, Python, Software Engineers, Technical Managers.
Nursing/Medical /Care: Carers, Health Care Assistants, Hearing Aid Dispensers, Nurses, Optometrists, Pharmacists, Social Workers.
Retail: None - recorded.
Secretarial/ Clerical: Administration, Receptionists.
Other: Buyers, Customer Service, Dutch Speakers, German Speakers, Languages, Life Science, Logistics, Microbiologists, Sales, Scandinavian Speakers, Skilled, Telesales, Unskilled.
Key Temp Skills
Accountancy/Financial: Accountants, Auditors, Book Keepers, CFO’s, Credit Controllers, Finance, Financial Directors, Payroll, Pension Admin, Taxation.
Blue Collar: FLT Drivers, HGV Drivers, LGV Drivers, Packers, Production and Warehouse, Welders.
Construction: Architectural Technicians, Bricklayers, Labourers.
Engineering: Design Engineers, Hardware Engineers.
Executive/Professional: Conveyances, Legal, Legal Secretaries, Portal Fee, Project Managers.
Hotels/Catering: None recorded.
IT/Computing: Developers, IT, Java, Software Technology.
Nursing/Medical/Care: Carers, Chemists, Health Care Assistants, Nurses, Social Workers.
Retail: None recorded.
Secretarial/Clerical: Administration and Receptionists.
Other: Buyers, Customer Services, Dutch Speakers, German Speakers, Microbiologists, Supervisors, Teachers.
KINGSTON RECRUITMENT LTD
Don’t forget, if you have any staffing requirements, just give us a call – 01482 228891 or contact us via email at firstname.lastname@example.org
The Kingston Recruitment Team