Key points from February survey:
- Slower demand growth and less marked drop in supply of permanent candidates…
- …results in weakest rise in salaries for new starters since October 2014
- Growth in temp billings remains relatively subdued
Staff Appointment: Growth of permanent placements remains below 2015 trend
Recruitment agencies in the South of England reported a further rise in full-time appointments in February. The rate of growth remained above the long-run survey average, and was strong overall. That said, it remained slower than the trend pace set in 2015.
Staff Availability: Drop in supply of permanent candidates slows
The availability of labour for permanent roles in the South fell for the thirty-second consecutive month in February. The pace of decline remained strong overall, and was faster than the UK average. That said, it was the slowest since January 2015 and the second-weakest in over two years.
Pay Pressures: Permanent salaries
Recruitment agencies in the South reported a further marked rise in salaries awarded to new permanent staff in February. The rate of inflation remained stronger than the long-run survey average, but slowed for the third successive month to the weakest since October 2014.
February saw a further broad-based increase in permanent staff appointments in the UK, as all four monitored regions posted growth. Moreover, rates of expansion accelerated in all cases. The strongest upturn was, once again, seen in the Midlands and the weakest in London.
Permanent candidate numbers fell across the four monitored English regions in February, the thirty-second successive month in which this has been the case. The quickest rate of deterioration was noted in the Midlands and the slowest, although still sharp, in London.
Permanent salaries in the UK rose for the forty-sixth straight month in February, with increases seen in all four surveyed regions. The strongest rate of salary inflation was recorded in the North, and the slowest in London.
This blog has been written with thanks to The Report on Jobs, a monthly publication produced by Markit and sponsored by the Recruitment and Employment Confederation.