Permanent placements increase at softest pace in four months

Key points from the January survey:

  • Slower increases in permanent placement

  • Demand for staff reaches 17-month high

  • Availability of permanent candidates drops at faster pace


Employers are crying out for people to fill vacancies. Fewer candidates are available in all regions, and this is dampening jobs growth.

If businesses can’t find the people they need they will outsource abroad, automate activity or shut up shop, resulting in fewer jobs available to UK nationals.

The NHS is already in turmoil because it doesn’t have enough staff and the government’s decision to prioritise immigration control over the economy in their EU negotiations means that finding candidates will become yet more difficult in the future.

We agree that more can be done to encourage under-represented groups into work, including disabled people, single parents and older workers. But the idea that this will resolve the talent shortage is pie in the sky…REC Chief Exec – Kevin Green


Permanent placements increase at softest pace in four months

January data signalled a further marked increase in permanent staff placements, despite the rate of growth easing to its slowest since September 2016.

Candidate availability continues to tighten…

There seems to be a drop in candidate availability at the start of 2017.

…contributing to further upward pressure on pay

Permanent staff starting salaries increased at a sharp and accelerated pace in January, with the rate of inflation the quickest in nine months. At the same time, growth in temp pay rates weakened from December’s seven-month record.


Thanks to HIS Markit

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