Job Market Report May 2015
- Growth of permanent placements eases, but remains marked overall
- Permanent salary growth remains strong
Permanent placements growth eases…
…but temp billings rise at faster pace
Salary growth cools, but still strong…
…as candidate availability remains tight.
Permanent staff placements continued to rise in May. However, the rate of growth slowed to a four-month low.
Permanent placements growth was broad-based across the English regions in May. The South registered the fastest rate of expansion, closely followed by the Midlands.
Demand from employers continued to rise but at the slowest rate in five months (for permanent staff). Private sector vacancies continued to show a higher increase than public sector vacancies. Private sector permanent staff saw the fastest increase overall.
In terms of sector, Executive/Professional employees and Accounting/Financial topped the rankings for the fastest rate of growth in demand for permanent staff.
Other Vacancy Data
Latest official data from the Office for National Statistics (ONS) signalled that vacancies rose 14.9% on an annual basis in the three months to April. That was the slowest growth since October 2013.
Meanwhile, internet-based recruitment spending was up 4.5% on a year-on-year basis in the fourth quarter of 2014. This was the weakest rise since the first quarter of 2013.
The availability of candidates to fill permanent roles continued to fall in May. The rate of decline remained marked, despite easing to the slowest in three months. Around 41% of survey respondents signalled lower availability, compared with fewer than 10% that noted a rise.
All four English regions saw reduced permanent staff availability during May. The South recorded the greatest decline.
Pay Pressures – Permanent salaries
Average starting salaries for permanent staff increased further in May. The rate of inflation remained strong, despite easing from April’s nine-month high. Around 32% of panellists reported a rise in salaries, compared with 3% that signalled a decline. Increased salaries were attributed by panellists to a combination of strong demand for staff and shortages of skilled candidates.
Salaries rose in all four English regions, with the Midlands posting the fastest growth.
UK average weekly earnings
Data from the Office for National Statistics indicated that annual growth of employee earnings (including bonuses) quickened to 1.9% in the three months to March, from 1.7% in the three months to February. This was driven by stronger pay growth in the private sector, offsetting a slowdown to near-stagnation in the public sector.