January 2020 Newsletter

KEY POINTS FROM SURVEY

NATIONALLY

Permanent placements rise for first time in a year
Vacancy growth remains near decade low
Staff availability continues to fall sharply

FOR THE NORTH OF ENGLAND

Further marked increase in permanent starters’ pay
Slowest fall in permanent labour supply since April 2017
Stronger demand for both permanent and temp workers

HAPPY NEW YEAR YOU ALL!!

RECRUITMENT ACTIVITY PICKS UP AT THE END OF 2019! BUT WHAT ELSE IS HAPPENING?

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

“It would appear that following the clarity of the election outcome, the jobs market finally began to show signs of life with permanent placements rising for the first time in a year.

“However, growth was modest and coming off a historically low base, so UK business will be hoping for quick government action to get the UK back on the path to growth including an investment in upskilling the workforce. Lingering uncertainty around the Brexit deal to be secured will continue to weigh on employers’ decision making around hiring and investment over the coming months, as well as job-seekers desires to seek new opportunities.”

Euan West, Office Senior Partner at KMPG in Leeds, said:

“With last month’s general election providing some future clarity for the economy, we are seeing a knock-on effect in confidence, with employers in the region exploring growth plans which will require support from the right mix of talent. If the job market continues to loosen in 2020 job-seekers will be increasingly pursuing new opportunities with the wind of ongoing pay inflation behind them.”

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

“After the uncertainty of 2019, there are some signs of a clearer outlook for hiring in today’s survey. With a new government in place and the path ahead looking more predictable, some businesses have decided that they have waited long enough. The quickest increase in permanent placements in the North since July should give encouragement to both recruiters and employers – let’s hope this is a sign of positive things to come.

“Feedback from recruiters show that the upcoming IR35 changes are affecting both placements and the availability of flexible workers. This is a delicate period for the jobs market and is the worst time to push through sweeping changes to the way we tax contractors. It is right that government engages further with business on the changes, but they should also delay implementation until next year to allow time for a full, independent review and effective regulation of the umbrella sector. As it stands, the government risks damaging ethical businesses and encouraging non-compliance.”

DEMAND FOR STAFF BY SECTOR

Permanent Staff

The number of people recruited for permanent job roles increased at the end of 2019. Although the rate growth was modest, it marked the first upturn in permanent staff appointments for one year. Anecdotal evidence suggested that the rise was supported by increased activity at clients.

Recruiters also mentioned that some businesses decided to approve new hires following a long period of delayed decision-making amid an uncertain outlook, as well as clients taking on permanent workers due to upcoming IR35 legislation changes.However, there were still reports that Brexit-related uncertainty had weighed on overall growth.

Permanent staff appointments rose in London, the Midlands and the North of England but declined further in the South of England.
Permanent vacancies rose in eight of the ten sectors monitored by the survey at the end of the year. The steepest increases were seen in Blue Collar and Engineering. In contrast Retail registered a further marked fall in demand for permanent workers.

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

Temporary/Contract Staff

The seasonally adjusted Temporary Billings index remained above the neutral 50.0 level at the end of the year, to signal a further increase in billings received from the employment of short-term workers. Though modest, the rate of growth was the joint-quickest recorded for eight months. Higher billings were widely linked to greater demand for temporary staff, which was in part due to greater risk-aversion in terms of permanent hires amid an uncertain outlook. However, the rate of expansion remained much weaker than seen this time last year

Detailed regional data highlighted increases across all four monitored areas, with the Midlands seeing by far the steepest rate of growth
Hotel and Catering topped the ranking in terms of temporary staff vacancies in December, followed by Blue Collar. The only sectors to record lower demand for short-term staff were IT & Computing, Retail and Executive & Professional.

Hotel and Catering topped the ranking in terms of temporary staff vacancies in December, followed by Blue Collar. The only sectors to record lower demand for short-term staff were IT & Computing, Retail and Executive & Professional.

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

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills 

Accountancy/Financial: Accountants, Auditors, Book Keepers, CFO’s, Credit Controllers, Estimators, Finance, Insurance, Investment, Management Accountants, Payroll, Pension Admin, Risk, Taxation.

Blue Collar: Drivers, Fork Lift Drivers, HVAC, Pest Control, Production Staff, Refrigeration Staff, Site Managers, Traces, Warehouse staff.

Construction: Architectural Technicians, Construction, Construction Sales, Labourers, Quantity Surveyors.

Engineering: Design Engineers, Electronics Engineers, Mechanical Engineers, Senior Electronic Engineers, Technicians.

Executive/ Professional: B2B, Compliance, HR, Law, Marketing, Portal Fee, PR, Project Managers.

Hotel/Catering: Baristas, Chefs, Front of House, Hospitality, Kitchen Porters.

IT/Computing: Analysts, Business Intelligence, CAD, CNC, Cyber Security, Data Professionals, Data Scientists, Database Developers, Developers, IT, Software Engineers, Technical Sales, Technology.

Nursing/Medical/Care: Social Workers.

Retail: Sales Staff.

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

Other: Buyers, Call Centre, Customer Service, Designers, Graduates, Sales, Security, Semi-skilled workers, Skilled Workers, Telesales, Testers

Key Temp Skills

Accountancy/Financial: Accountants, Auditors, Book Keepers, Credit Controllers, Finance, Financial Advisors, Mortgage Advisors, Para-planners, Part Qualified Finance, Payroll, Pension Admin, Risk.

Blue Collar: Blue Collar, Carpenters, Drivers, FLT Drivers, HGV Drivers, Industrial Ops, Manufacturing Ops, Production, Warehouse Operatives, Welders.

Construction: Construction Workers, Joiners.

Engineering: Design Engineers, Mechanical Engineers, System Engineers.

Executive/ Professional: Agile Project Managers, HR, Law, Marketing, Portal Fee, Project Managers.
Hotels/Catering: Baristas, Catering, Chefs, Hospitality, Kitchen Porters.

IT/Computing: Analysts, CAD, CNC, Data Professionals, Data Scientists, Developers, IT, Java, Technology.

Nursing/Medical/Care: Doctors, Health Professionals, Social Workers.

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

Other: Buyers, Call Centre, Customer Service, Skilled, Testers, Unskilled Workers.

 

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