Key points from the October UK labour market:
- Permanent appointments growth still strong in October.
- Pay growth moderates
- Staff availability continues to decline markedly.
Growth of staff appointments eases…
Permanent staff placements continued to rise in October, extending the current period of expansion to 25 months. However, the rate of expansion was the slowest since November 2013. Similarly, temporary/contract staff billings increased for an eighteenth successive month, but the latest rise was the least marked since June 2013.
…reflecting slower rise in demand for staff
Although the number of vacancies available to candidates seeking work also increased further in October, the rate of growth eased to a 10-month low.
Pay growth moderates
October data pointed to slower growth of staff pay. Permanent staff salaries increased at the weakest rate since February, while temporary/contract staff pay growth eased to a five-month low.
Candidate availability continues to fall sharply
Recruitment consultants reported that candidate availability remained tight in October. The rate of decline in permanent staff availability was marked, despite easing slightly to the slowest since May, while temp availability decreased at the fastest pace in three months.