KEY POINTS FROM SURVEY

NATIONALLY 

Staff placements fall again amid ongoing economic uncertainty.
Starting salaries and temp wages both increase at slower rates.
Candidate supply rises sharply as vacancies drop at a faster pace.

THE NORTH

Permanent staff appointments and temp billings both fall.
Sharper rise in permanent staff supply.
Pay pressure persists amid competition for suitably skilled workers.

SOFTEST INCREASE IN STARTING SALARIES FOR NEARLY THREE YEARS

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

“The impasse between economic uncertainty and hiring decisions continued into February. Chief Executives tell me they are ready to invest and grow - including taking on new staff - yet the reality is they’re being held back by the prospect of weak demand.
“Businesses would ideally have liked a Budget that drives investment, boosts economic growth, and helps productivity bounce back. While it was encouraging to see measures to increase labour supply, there was limited headroom for change - only time will tell if the Chancellor’s announcements go far enough to shift the dial on the UK’s economic outlook.”

Ian Beaumont, Newcastle Senior Partner for KMPG said:

“Economic uncertainty and subdued demand is still impacting hiring conditions across the North of England, with permanent vacancies falling again. The increase in temp billings we saw in previous months was indicative of businesses wanting to be flexible on cost base, however demand for workers in February meant that we saw a fall for the first time in four months suggesting businesses are waiting to fulfil their hiring plans. We are seeing workers looking for permanent positions as it offers them greater security, but there aren’t enough vacancies available as businesses want greater certainty to be able to confidently pick up hiring activity. For hiring activity to pick up consistently again, we’ll need to see a strengthened market and economic stability.”

Neil Carberry, Chief Executive of the REC, said:

 “As inflation is falling back to target earlier than expected, it’s time to get the focus on growth. This month’s survey shows the market slowing, and a concerning increase in the decline in temporary billings, to the lowest performance since the middle of 2020. Given recent news about GDP dropping, this overall picture is no surprise – but it is certainly still quite resilient by comparison with previous recessions. We know the economy has the potential to create jobs and opportunities – but it can only do that sustainably if we can get economic growth going.
“Following the Budget last week, which didn’t address some of the key drivers of growth like skills, infrastructure and reducing the cost of investment and employment, all eyes are on the Bank now. Lower interest rates will help build firm’s confidence to invest.
“The temporary labour market is the unsung hero of the economic uncertainty of recent years. It keeps the cogs of the economy turning amidst uncertainty and labour shortages – but it still needs nurturing. As we approach the General Election, businesses will be looking to politicians for commitment on this, and reforms of regulation that will support it from IR35, to regulating of the umbrella market and delivering flexibility to the Apprenticeship Levy.

DEMAND FOR STAFF BY SECTOR

Permanent Staff    

The seasonally adjusted Permanent Placements Index signaled a reduction in permanent staff appointments across the UK for the seventeenth month running in February. The rate of contraction was little changed from that seen at the start of 2024 and sharp. Around 40% of recruiters noted lower permanent staff appointments in the latest survey period, while 26% saw an increase. The latest drop in placements was generally linked to recruitment freezes, delays in hiring decisions, and a drop in vacancies amid the weaker economic outlook.
All four monitored English regions noted lower permanent placements midway through the opening quarter of the year, with London seeing the sharpest drop overall.
Lower demand for permanent workers was registered in eight of the ten broad employment categories during February. The Retail and Executive/Professional sectors noted the steepest rates of contraction. Engineering and Nursing/Medical/Care meanwhile saw vacancies increase.

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

Temporary/Contract Staff  

The February survey data signaled a marked and accelerated decline in billings received from the employment of short-term staff. Notably, the rate of reduction was the steepest recorded since July 2020. Recruiters often mentioned that a slowdown in temp staff hiring and tighter employer budgets had impacted billings over the latest survey period.
The Midlands was the only monitored English area to register an increase in temp billings during February. The quickest reduction was meanwhile seen in the capital.
The Retail and Construction sectors led the downturn in demand for temporary workers midway through the opening quarter of the year. Of the ten surveyed job categories, only Blue Collar and Engineering noted increases in demand for short-term staff during February.

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

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills   

Accountancy/Financial:   ACA, ACCA, Accounts Assistant, Accounts Payable, Auditors, Bookkeepers, CIMA, Credit Controllers, Estate Planning, Finance, Finance Directors, Finance Managers, Financial Controllers, Management Accountants, Part Qualified, Payroll, Pension, Purchase Ledger, and Taxation.

Blue Collar:  Drivers, HVAC, Manufacturing, Mechanics, Platers, Refrigeration, Trades, and Welders.

Construction:  Architectural Technicians, Fitters, and Quantity Surveyors.

Engineering: Design Engineers, Draughts persons, Electrical Engineers, Fire & Security Engineers, Maintenance Engineers, Mechanical Engineers, Production Engineers, Structural Engineers System Engineers, Technicians, and Toolroom Supervisors.   

Executive/ Professional:  Business Development, Commercial Managers, Compliance, Digital Marketing, Energy Renewables, HR, Legal, Management, Marketing, Mid-Management, Operations Managers, Recruitment Consultants, and Specialist Functions.

Hotel/Catering: Catering, Chefs, Hospitality and Housekeeping.

IT/Computing: Cyber Security, Data Engineers, Data Scientists, DDaT, Developers, Full Stack Developer, IT, Software Architects, Software Engineers, Technical Roles, Technology and UXDevelopers.

Nursing/Medical /Care: Carers, Doctors, Healthcare, Communications, Mental Health, Nurses, Occupational Therapist, Paramedics, Physiotherapists, Psychologists, Social Care Workers and Social Workers.

Secretarial/ Clerical:  Administration, and Office Support.

Other:  Account Managers, Buyers, Customs, European Languages, Fundraisers, Life Sciences, Product Managers, Property Sales, Sales, Security, Teachers, Telecommunications, and Tele sales.

Key Temp Skills    

Accountancy/Financial:  ACA, ACCA, Accountants, Auditors, Bookkeepers, CIMA, Credit Controllers, Estate Planning, Finance, Payroll, Purchase Ledger, and Taxation.

Blue Collar:  Coded Welders, Electricians, Food Processing, FLT, Industrials, Manufacturing, Mechanics, Plater, Production, Security Guards, Welders, and Warehouse.

Construction:   Architectural Technicians, Drainage Specialists, Joiners Labourers, and planners.   

Engineering: Electrical Engineers, Fire & Security Engineers, Installation Engineers, Maintenance Engineers, Mechanic Engineers, Radio-Frequency Engineers, and Structural Engineers

Executive/Professional:  Commercial Managers, Compliance, HR, Legal, and Mid-Senior Managers.
Hotels/Catering:  Chefs, and Hospitality.

IT/Computing:  Automation Testers, Cyber Security, Data Engineers, Developers, IT, Linux, Software Design, Software Engineers, Technical Staff, and Technology.

Nursing/Medical/Care:  Care Home Managers, Nurses, and Social.  

Secretarial/Clerical:  Administration and Receptionists.  

Other: Customer Service, European Languages, and Telecomms.

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

Share