KEY POINTS FROM SURVEY
Starting salary inflation holds close to record high
Labour shortages lead to slower rise in staff placements
Demand for staff remains robust
TIGHT LABOUR MARKET CONDITIONS LEAD TO FUTHER RAPID INCREASES IN STARTING PAY
Commenting on the latest survey results, Claire Warnes, Partner and Head of Education, Skills and Productivity at KPMG UK, said:
“Yet again in April, recruitment challenges abound in every region and every sector of the economy. Employers continue to be relentlessly challenged by attracting and retaining talent, rising costs due to inflation, as well as supply chain pressures. Skills and employment are a key pillar of “levelling up”, yet the recruitment data shows that a one size fits all approach is unlikely to succeed. The regional and sector variations we have seen over the past 12 months of jobs data provide clear evidence that long-term skills development strategies with employers working with all levels of government are urgently needed”
Commenting on the latest survey results, Euan West, office senior partner for KPMG in Leeds, said:
"After months of seeing these trends continue to head in the same direction, it is clear that this situation is not going to sort itself. We simply do not have enough candidates to fill the vacancies available and it seems that this problem is exacerbated further in the North where demand for workers is stronger than in the rest of the UK. This is not going to be a simple fix, businesses, working with the government, need to look at upskilling and reskilling people so they can fill these vacancies, otherwise we will be at an impasse where the vacancies remain unfilled and businesses are unable to hire the staff needed to fulfil their requirements.
Neil Carberry, Recruitment & Employment Confederation chief executive, said:
“The labour market has been tightening for months on end, driving near-record growth in starting salaries for new staff. With vacancy numbers also historically high, this is a great time to be looking for a job – and a pay rise to help meet the rising cost of living.
“The number of job placements being made is still growing, but at a more stable rate. Growth is now at its lowest level for a year. This is no surprise, given how hot the market has been. Employers need to get their offer to candidate’s right if they are going to succeed in this market. Enhancing diversity and inclusion and effective early career hiring are also important elements of a winning approach – consulting a recruitment expert can help with all of this.”
DEMAND FOR STAFF BY SECTOR
Latest survey data indicated a further slowdown in growth of permanent staff appointments across the UK during April. Though sharp, the rate at which permanent placements increased was the slowest seen since the current period of expansion began in March 2021. Anecdotal evidence indicated that increased activity at clients and robust demand for workers had supported the latest rise. At the same time, there were reports that low candidate availability and skill shortages had weighed on recruiters' abilities to fill roles.
On a regional basis, the Midlands posted the steepest increase in permanent placements at the start of the second quarter. That said, rates of growth slowed across all four monitored English areas
All ten monitored job categories saw sharp increases in demand for staff in April, led by Hotel & Catering. Engineering and Blue Collar came in second and third place in the rankings, respectively.
As has been the case since August 2020, billings received from the employment of temporary staff increased during April. The rate of expansion slowed for the third month running and was the softest seen for a year. Nonetheless, the upturn was sharp overall and remained much quicker than the series average (55.2). Panellists often mentioned that higher workloads at clients and a greater need to fill vacancies (even those described as permanent positions) had helped to lift billings in April.
The upturn in temp billings was broad-based across the four monitored English regions, and was led by the Midlands
Hotel & Catering also saw the sharpest rise in temporary staff vacancies at the start of the second quarter. The softest, but still marked, increase in demand for short-term staff was signalled for Accounting/Financial.
Hotel & Catering
SKILLS IN SHORT SUPPLY
Key Permanent Staff Skills
Accountancy/Financial: Accountants, Auditors, Book-keepers, Credit Controllers, Estimators, Finance, Insurance, Payroll, Purchase Ledger and Taxation.
Blue Collar: Distribution, Drivers, HGV, Industrials, Manufacturing, Production Security Guards, Site Managers and Warehouse.
Construction: Architectural Technicians, Construction and Quantity Surveyors.
Engineering: Electrical Engineers, Hardware Engineers, Mechanical Engineers, Radio-Frequency Engineers, Senior Electronic Engineers and Technicians.
Executive/ Professional: Business Development, HR, Legal, Management, Marketing, PR, Project Managers, Recruitment Consultants ad Solicitors.
Hotel/Catering: Chefs and Hospitality.
IT/Computing: Automation Testers. CAD, Developers, Digital, Infrastructure Analysts, IT, Software, Technical Sales and Technology.
Nursing/Medical /Care: Carers, Chemists, Health Care Assistants, Hearing Aid Dispensers, Nurses, Optometrists, Pharmacists and Social Workers.
Secretarial/ Clerical: Administration, Office Staff and Receptionists.
Other: Buyers, Commercial, Customer Service, Life Sciences, Logistics, Multilingual, Quality Control, Sales, Skilled, Supply Chain and Teachers.
Key Temp Skills
Accountancy/Financial: Accountants, Auditors, Book Keepers, Credit Controllers, Finance, Payroll Purchase Ledger and Taxation.
Blue Collar: Carpenters, Cleaners, Decorators, Drivers, FLT, HGV, Industrials, Manufacturing, Mechanics, Rail, Security Guards, Warehouse and Welders.
Construction: Architectural Technicians, Bricklayers and Labourers.
Engineering: Industrial Engineers and Technicians.
Executive/Professional: Business Development, Compliance, HR, Legal, Marketing and Project Managers.
Hotels/Catering: Catering, Chefs and Hospitality.
IT/Computing: Analysts, Automation Testers, Developers, IT, Software Engineers and Technology.
Nursing/Medical/Care: Carers, Doctors, Health Care Assistants, Hearing Aid Dispensers, Nurses, Optometrists, Pharmacists Social Workers and Support Workers.
Retail: None recorded.
Secretarial/Clerical: Administration, Office Staff and Receptionists.
Other: Buyers, Customer Service, Graduates, Logistics, Multilingual, Sales, Security, Teachers and unskilled.
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