October 2016 Newsletter

KEY POINTS FROM SURVEY

Permanent salary growth quickens Permanent placements and temp billings increase moderately.

Solid growth of permanent salaries but temp pay at 40 month low

Slower decline in staff availability

Commenting on the latest survey results, REC Director of Policy Tom Hadley says:

“This month’s report contains further evidence that UK employers have shrugged off the initial shock of the referendum result. Overall permanent hiring is in growth for the second consecutive month. Even more encouraging is the growth in vacancies; consumer confidence and strong demand on businesses has ensured that hirers are creating new jobs.

“There remains a degree of caution in London, where permanent hiring has been on pause for the last five months. This is likely to be because of uncertainty around the longer-term impact of the referendum result within the financial sector in particular

“There are indicators that the gap between pay growth and inflation is narrowing, which could present a threat to sustainable economic growth. We hope the government will address this issue in the Autumn Statement with fiscal stimulus. This should help to settle the nerves so that employers feel confident enough to keep hiring.

“We also urge the government to be mindful of talent shortages faced by many UK employers. Despite some of the rhetoric at this week’s Conservative Party conference, we will continue to need workers from overseas in a range of sectors, from engineering to health care. The business community must have a role in developing an immigration model that strikes the right balance.”

 

 

The table above shows Summary of UK labour market statistics for June to August 2016, seasonally adjusted

DEMAND FOR STAFF BY SECTOR

Permanent Staff

The number of people placed in permanent jobs rose again in September, having returned to growth in August. That said, the rate of expansion remained marginal overall. Panellists commented on rising client demand for staff, although skill shortages continued to be reported as a factor putting a brake on growth.

Permanent placements rose fastest in the Midlands during September. However, London, saw a further reduction in volumes.

Engineering was top of the demand for staff “league table” in September, ahead of Nursing/Medical/Care and IT & Computing.  At the bottom of the table was Construction, where only a marginal increase was recorded.

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

Temporary/Contract Staff

Agencies’ billings from the employment of temporary/contract staff rose further in September. However, the rate of expansion moderated from Augusts three month high.

Growth of short term staff billings was broad based across the monitored English regions in the latest survey period, but Scotland saw a slight fall.

Hotel & Catering was the most sought after category, with Engineering in second place. As with permanent staff, Construction posted the slowest rise.

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

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills

Accountancy/Financial: Accountants, Audit, Compliance, Risk.

Blue Collar: HGV Drivers.

Construction: Architects, Managers.

Engineering: Automotive Engineers, Design Engineers.

Executive/ Professional: None recorded.

Hotel/Catering: None recorded.

IT/Computing: Digital Marketing, Games, Java, SQL.

Nursing/Medical/Care: Care workers.

Secretarial/Clerical: None recorded.

Other: Customer Service, Pharmaceuticals, Sales, Scientists, Supply Chain, Toolmakers.

Key Temp Skills

Accountancy/Financial: Audit, Compliance, Risk.

Blue Collar: Bricklayers, Carpenters, Electricians, Labourers, LGV Drivers, Warehouse, Welders.

Construction: None recorded.

Engineering: None recorded.

Executive/Professional: None recorded.

Hotels/Catering: None recorded.

IT/Computing: Developers, Digital, Games.

Nursing/Medical/Care: Care Workers.

Secretarial/Clerical: None recorded.

Other: Customer Service, Pharmaceuticals, Sales, Scientists, Supply Chain, Toolmakers.

Kingston Recruitment Ltd participate in the national monthly survey produced by IHS Markit and sponsored by the Recruitment Employment Confederation (REC).

Graph from Office of National Statistics website.

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