February 2022 Newsletter

 

KEY POINTS FROM SURVEY

NATIONALLY 

Substantial increases in permanent placements and temp billings
Pay pressure remain elevated as candidate availability falls rapidly
Overall vacancy growth eases, but remains sharp


STARTING SALARIES CONTINUE TO RISE AT NEAR-RECORD PACE AMID SHARPER DROP IN CANDIDATE SUPPLY  


Commenting on the latest survey results, Claire Warnes, Partner and Head of Education, Skills and Productivity at KPMG UK, said:
 

“The new year has seen the jobs market continuing where it left off, with a steep climb in permanent and temporary hiring. Meanwhile, a sustained decline in the number of suitable candidates has pushed starting salaries up for yet another month.
“It will be important to monitor how these dynamic features of the job market respond to the competing pressures being felt by both businesses and candidates – the desire to make the most of the reduction in Covid restrictions on the one hand; and the understandable concern over the cost of living and inflationary rises on the other.
“Some sectors are continuing to show the strain of high demand for permanent and temporary roles. In particular, the IT and Computing, and Nursing, Healthcare and Medical sectors saw the greatest vacancy increases for yet another month, reflecting the significant workforce and skills challenges which these sectors have faced, and which the pandemic has accelerated.”

Commenting on the latest survey results, Jennifer Lee, office senior partner for KPMG in Leeds, said:

"The new year has seen a continuation of the constraints of 2021 on the job market as January marks yet another month where demand for staff in the North grew while businesses were faced with a deteriorating supply of candidates.
“It will be interesting to see whether the increased costs of living will encourage more people to change roles while starting salaries are high or if they will remain hesitant to change roles. For businesses, until the pool of candidates expands and more people decide to make a change, we look likely to stay in this cycle caused by the increased competition for staff."

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

"The jobs market is still growing strongly at the start of 2022. Recruiters are working hard to place people into work as demand from employers continues to rise. With competition for staff still hot, companies are having to raise pay rates for new starters to attract the best people. And the cost of living crisis means there is also more pressure from jobseekers who want a pay rise. But pay is not the only important factor - companies must think about all aspects of their offer to candidates to ensure they get the staff they need. This will be important as firms’ spending is under pressure from inflation as well.
"Government's role is to manage inflation, but also to ensure that they do not discourage investment - that is what will drive the economy to grow through this year. Now is the wrong time to be raising National Insurance, the biggest business tax. But politicians should also be thinking about longer-term workforce planning, making sure we have the skills the country needs for the future. This will take a collaborative effort between the public and private sectors, and the recruitment industry stands ready to help."


DEMAND FOR STAFF BY SECTOR

Permanent Staff    

Permanent Staff
The seasonally adjusted Permanent Placements Index remained comfortably above the neutral
50.0 level in January, to signal an eleventh consecutive monthly rise in permanent staff appointments across the UK. According to recruiters, improved confidence around the outlook and greater vacancies had supported the latest increase in permanent placements. Though sharp, the rate of growth eased to a three-month low and was the joint-slowest since April 2021.
The steepest increase in permanent staff appointments was seen in the South of England, though rates of expansion softened across all four monitored English regions.
Demand for permanent workers rose across all ten monitored job sectors at the start of 2022. The quickest increase in demand was seen for IT & Computing, followed by Nursing/Medical/ Care. The slowest upturn in vacancies was seen in the Retail sector.

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

 

Temporary/Contract Staff  

UK recruitment consultancies signalled a sustained rise in billings received from the employment of short-term/contract staff in January. Billings have now increased in each of the past 18 months. Furthermore, the rate of expansion was the quickest seen since last August and rapid overall. Reports from panel members indicated that strong demand for workers, and often the need to fill vacant roles quickly, had helped to drive the latest upturn in temp billings.
All four monitored English regions saw sharper increases in temp billings in January, bar London. The quickest rate of growth was seen in the North of England.
The increase in demand for temporary staff was also broad based across all ten monitored sectors in January. The quickest expansions were seen in the Nursing/Medical/Care, Blue Collar and Hotel/Catering categories.

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


SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills

Accountancy/Financial:    Accountants, Auditors, Book-keepers,   Credit Controllers, Estimators, Finance, Payroll, Risk and Taxation.

Blue Collar:  Drivers, Industrial, Manufacturing, Mechanics. Production Security Guards, Site Managers, Warehouse and Welders.

Construction:  Architectural Technicians and Quantity Surveyors.  

Engineering:  Electrical Engineers, Engineers and Technicians.   

Executive/ Professional:   Compliance, HR, Legal, Management, Marketing, PR, Project Managers, Recruitment Consultants and Scientists.

Hotel/Catering: Chefs, and Hospitality.

IT/Computing:  CAD, CNC, Data Professionals, Developers, Digital, IT, Software Engineers, Technical Sales and Technology.

Nursing/Medical /Care: Carers, Health Care Assistants, Hearing Aid Dispensers, Nurses, Optometrists, Pharmacists, Social and Support  Workers.

Secretarial/ Clerical:  Administration and Office Staff.

Other:  Customer Service, Customs, Logistics, Operations, Sales, Skilled, Supply Chain and Teachers.

 

Key Temp Skills 

Accountancy/Financial:  Accountants, Auditors, Book Keepers, Credit Controllers, Finance, Payroll and Taxation.

Blue Collar:  Carpenters, Decorators, Drivers, Industrial, Manufacturing, Packers, Production, Security Guards, Warehouse and Welders.  

Construction:   Architectural Technicians, Bricklayers and Labourers.  

Engineering: Engineers.

Executive/Professional:  HR, Marketing, PR and Project Managers.

Hotels/Catering:  Chefs and Hospitality.

IT/Computing:  CNC, Data Professionals, Developers, Digital, IT, Software Engineers and Technology.

Nursing/Medical/Care: Carers, Dentists, Health Care Assistants, Hearing Aid Dispensers, Nurses, Optometrists, Pharmacists and Social Workers.  

Retail: None recorded.

Secretarial/Clerical:  Administration, Office Staff and Receptionists.  

Other:  Call Centre, Customer Service, Customs, Education, Freight, Graduates, Logistics, Operations, Sales, Supply Chain and unskilled.

We are working harder than ever to keep a good supply of quality candidates to offer you! 


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

 

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