- Permanent placements rise at slowest rate in ten months.
- Growth in starting salaries moderates to four-month low.
Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG, said:
“Buoyancy is back in British businesses, with low and falling unemployment evident today and the promise of lower corporation tax rates, tomorrow. Combine the two and it would be easy to assume that the only curve we will see is an upward one, yet there are still areas of the UK where the signs suggest we are not quite ready to turn the corner. Youth unemployment is, for example, still too high and the next few months will be a critical test of how businesses can help get the new generation of workers onto the employment ladder.
“It won’t be easy as the latest figures suggest that as many organisations come to the end of their financial year, purse strings have been tightened and recruitment decisions are put off until new budgets are agreed. With permanent placements slowing to a ten month low, perhaps the uncertainty caused by political crises across the globe are beginning to affect decision-makers’ confidence.
“At the same time wages continue to dominate debate around the strength of the labour market. Starting salaries might look healthy, and are undoubtedly tempting some people to move, but the reality is that employers will soon reach a ceiling beyond which they won’t be able to throw more cash around to land the right candidate. It also seems that the incentive for taking on temporary roles is strengthening as pay packets improve, and if the cost of living continues to rise as expected, we may yet see candidates forced to choose between securing financial rewards in short bursts or long-term security. As we enter the tail end of the year, the hope must be that this is a short-term blip, rather than heralding a winter of discontent.”