May news …Rise in Vacancies…Drop in candidate availability.

Key Points:

  • Continued rise in permanent placements;
  • Growth of demand for staff picks up for the first time in nine months;
  • Steeper decline in candidate availability triggers greater rises in pay.

Permanent placements…

There has been an increase in permanent placements but the rate of expansion in April was the softest witnessed in 2018. The growth of placements was underpinned by a further substantial rise in demand for staff and greater job vacancies.

Decline in candidate availability…

The rate of reduction in candidate availability for permanent roles has quickened to a three-month record. The steepest decline was in the South of England.

Growth of demand for staff…

Vacancies for permanent roles have increased, thereby indicating that there is a greater demand for staff. This demand was higher in the public, as compared to the private, sector.

Pay pressures…

There has been a further rise in starting salaries for candidates placed into permanent roles. This has been linked to candidate shortages and a robust demand for staff. The strongest rise was in the South of England.



Demand for staff is still on the rise in every other sector, but candidate availability keeps dropping. Employers are paying more to attract the right people into their vacancies. For individuals, now is a good time to look for a new job, as you are in a strong position to negotiate higher pay. For employers, the challenge is to stay ahead of the competition to maintain and enhance your workforce. This is about more than just pay, it is about providing progression opportunities and a positive workplace culture. As recruitment gets harder the only solution for employers is to get better at attracting and retaining the right skills and staff…

Share this page:

Latest market news: High demand for staff but low candidate Availability

 Key points from the March Survey:

  • Permanent placements continue to rise;
  • Growth of demand for staff remains high, but candidate availability drops lower;
  • Starting salaries increase to greatest extent for five months.

Growth in permanent placements…

Although the rate of expansion has softened from February’s three-year record high, the growth in permanent placements remains sharp. Permanent placements vacancies continue to rise at a slightly faster pace than that for temporary job roles.

Candidate availability...

The availability of permanent workers has fallen for the fifty-seventh consecutive month in March. Key permanent staff skills reported in short supply includes in particular Accountants, Engineers, HGV Drivers and Web Developers.

Pay pressures…

The rate of inflation in salaries for newly-placed permanent staff has accelerated for the second month running in March. Evidence suggested that the higher salaries are attributed to strong demand for staff alongside competition for scarce numbers of candidates with the required skills for the roles. Data published by the Office for National Statistics shows improved earnings growth in its latest report. Alongside a softer increase in living costs, this suggests that the pressure on real wages may be coming to an end.


Permanent placements are growing month on month as demand for staff remains high. More people are entering employment, but it doesn’t make up for the shortfall of candidates for many roles, from cyber security and aerospace through to sewing machinists and drivers.

As a result, employers are increasing starting pay to draw candidates away from current roles into new positions. 

Candidates planning to move jobs have a strong chance of getting a pay rise. With inflation outstripping pay growth for over a year now, high pay offers will be tempting, as the pressure on starting salaries still isn’t translating into pay rises for staff who stay put. Employers need to look at other means to keep staff, such as creating a good workplace culture and offering progression opportunities.


Share this page:

Inflation Remains at a Record High Amid Candidate Shortages

Key Points from the February Survey:

  • Softer rise in permanent placements
  • High levels of candidate shortages amid high starting salaries
  • Softer rise in staff vacancies

Softer rise in permanent placements…

The number of people placed in permanent jobs increased in February although at a slower rate than January’s recent high. The continued increase has  been attributed to a strong demand for staff and a greater willingness among candidates to take up new roles

Decreased demand for staff…

The demand for staff for permanent positions has risen at its slowest pace in fourteen months.

Availability of staff…

The availability of staff for permanent roles continued to decline in February.

Pay Pressure…

Salaries for permanent starters have increased further in February and the rate of inflation remains at a record high. The higher salaries have been attributed to higher candidate and skill shortages amid rising vacancies.



Share this page:

Recruitment news Jan 2018 – Permanent recruitment continues to rise at an increasing pace

Key Points from the December Survey:

  • Permanent placements continue to rise at an increasing pace;
  • Pay inflation remains high alongside a further decrease in candidate availability;
  • Demand for staff softens but remains historically strong.

Permanent Placements

Permanent staff placements have increased at the quickest pace since August. This has resulted in a higher number of people placed in permanent job roles for the seventeenth month running in December.  Key permanent staff skills reported to be in short supply esp paraplanners but also in construction and engineering.

Staff Availability

There has been an accelerated and steep drop in permanent candidate numbers. The rate of deterioration is the fastest recorded over the past two years.

Permanent Salaries

The trend of higher starting salaries for permanent jobs has continued into December. Although the pace of inflation softened for the third month in a row, growth remained sharp overall.

Demand for Staff

Although there has been an easing in the rate of expansion of demand for staff, the rate of growth has remained sharp and above the series average.


Latest statistics reveal that 32.08 million people were in work in the three months to October. Although this was 56,000 fewer than in the prior three months, this showed an increase of 325,000 compared to the same period in 2016.

Commentary: The number of people finding jobs via recruiters is growing, even while the overall employment rate is plateauing. This suggests that more employers are turning to recruiters to help them fill vacancies as candidate availability continues to fall and recruiting good people becomes that much harder. As a response to these candidate shortages are offering increased starting salaries to attract staff but while this has been the case for some time it isn’t translating into significant wage growth across the economy yet.

Early in the New Year, people often think about changing jobs, so employers are going to have to think carefully about how they can both retain existing capabilities and find the new hires they need as competition for people intensifies. Bosses should consider going to wider talent pools and to be inventive about how to improve their employer brand and make themselves an even more attractive place to work.


Share this page:

January’s Job Market Report

January Job Market Report

Key points from the survey:

  • Slower rises in both permanent and temporary staff appointments

  • Permanent salary growth moderates to 26-month low

  • Candidate availability falls at weaker, but still marked, rate


Commenting on the latest survey results, Bernard Brown, Partner at KPMG, said:

“Hiring remained slow but steady during December, with businesses and candidates keen to complete negotiations before Christmas. We are beginning to see a shift away from short term, low risk hiring, with demand for permanent staff outpacing that for temporary workers. This indicates businesses’ confidence is steadily solidifying, leading to an increased willingness to make long term investments in their workforce.”


Growth of staff appointments eases…

The number of people placed in permanent jobs continued to increase in December. After accounting for expected seasonal factors, the index signalled that the rate of expansion remained solid, albeit slower than in November. Panellists commented on rising demand for staff and robust client confidence as factors underpinning the latest increase in placement volumes.

The South posted the fastest growth of permanent staff placements in December, while the slowest rise was seen in London.

Temporary/contract staff billings also increased at a slower pace, with the latest rise also slower than the previous month. Anecdotal evidence from the survey panel linked higher temp billings to rising activity levels at client companies.


…Stronger rise in demand for staff

Vacancies increased at a sharp and accelerated rate in December. Demand for permanent staff continued to rise at a faster pace than that signalled for short-term workers.

The strongest rise was seen for IT & Computing workers with Executive/Professional and Accounting/Financial staff just behind.


Decline in candidate availability eases but still sharp…

The availability of candidates to fill permanent roles continued to decline in December. Although remaining sharp, the rate of deterioration eased since November. Lower permanent staff availability was recorded across each of the four monitored English regions, with the sharpest drop seen in the Midlands.

Temporary/contract staff availability fell further at the end of 2015. Although easing from November’s 18-year record, the rate of deterioration remained considerable. Mirroring the trend for permanent staff, the greatest reduction was seen in the Midlands.


…Pay pressures ease

Salaries awarded to staff placed in permanent jobs increased further in December. However, the rate of growth was the slowest in over two years. Around 21% of panellists reported higher salaries in the latest survey period, compared with approximately 6% that signalled a fall. Those panellists reporting higher salaries generally cited competition for scarce candidates.

Temporary/contract staff hourly pay rates increased at the weakest pace in 21 months.


Feature: Earnings Growth

The UK labour market remained something of an enigma in October. Unemployment fell to a seven-year low but pay growth also eased, once again confounding expectations that a tightening labour market will inevitably drive wages higher. In fact, wage growth is slowing. Average weekly earnings excluding bonuses rose just 2.0% on a year ago in the three months to October, the slowest rate seen since February and down from 2.4% in the three months to September. Even including bonuses, the annual rate fell from 3.0% in the three months to September to 2.4%.

So why isn’t headline pay growth accelerating? It’s not because the average worker who stays in their job feels too insecure to ask for a pay rise. A survey of households in December showed job insecurity at the lowest since data were first collected in 2009. The possible answer is that the renewed weakness of pay growth reflects annual pay reviews that are linked to inflation. With inflation around zero, and even negative in some recent months, it’s not surprising that pay reviews are having a dampening effect on wage growth. However, in some sectors, notably construction where there tends to be a high turnover of staff and where skill shortages are acute, the effect of the tightening labour market is more than offsetting the weakness of annual pay reviews, and average pay growth has accelerated in recent months.


Dec Job Market Report Graph

Share this page:

August’s Job Market Report

Growth of staff appointments falls further…blue news

Although permanent placements continued to rise in August, the rate of growth eased further, hitting a 27-month low.

…restricted by skill shortages

The availability of candidates for permanent roles fell further in August, with the rate of decline accelerating to the sharpest for a year.

Salary growth remains strong…

Starting salaries for people placed in permanent roles continued to increase in August. The rate of growth remained strong relative to the survey’s historical average.

…supported by robust demand

Vacancies continued to rise at a marked rate in August. Demand for permanent staff continued to rise at a faster pace than that for temps.


Permanent placements increase at slowest pace since May 2013 whilst vacancies growth remains strong

The number of people placed in permanent roles rose further in August. However, the rate of expansion moderated further from April’s recent high to the slowest in 27 months. Anecdotal evidence suggested that, although demand for staff remained strong, placements had in many cases been held back by a lack of skilled candidates.

Midlands-based consultancies signalled the strongest growth of permanent placements during the latest survey period, while those in London recorded the weakest increase.

Demand for staff continued to rise at a marked rate in this time.

Latest official data from the Office for National Statistics (ONS) signalled that vacancies rose 10.4% on an annual basis in the three months to July. That was the slowest growth since the three months to March 2013


The availability of permanent staff continued to deteriorate in August whilst salary growth continued to rise

Moreover, the latest fall was the sharpest for a year, with close to half of panellists reporting a decline in the latest survey period.

Lower permanent staff availability was signalled across all four of the monitored English regions, with the Midlands seeing the steepest reduction.

Key permanent staff skills reported in short supply:

  • Accountancy/Financial: Audit, Compliance, Credit, Finance, Paraplanners, Risk.
  • Executive/Professional: Management.

A number of panellists linked a shortage of skilled workers to helping push a further rise in starting salaries for successfully placed candidates. The Midlands recorded the sharpest increase in salaries during the latest survey period, while London saw the slowest rise.


Commenting on the latest survey results, Bernard Brown, Partner at KPMG, said:

“There was no respite for recruiters in August, who were left struggling to fill vacancies after a vast swathe of Britain’s job seekers appeared to take the summer off. The number of people looking for a job fell at the sharpest rate seen for a year, leaving unfilled posts across the economy.

“Many candidates may have simply shelved their plans for the summer, believing their prospects to be stronger in September. However this is of little comfort to those businesses needing staff now to meet demand for their goods and services.

“This frustrating dynamic continues to have an inflationary effect on pay, which rose yet again in August. With candidates having their pick of the job market, companies need to offer more than just cash. In order to attract and retain the best people businesses need to offer a bespoke package of benefits, including flexible working, which can be tailored to suit the individual and their priorities and commitments.”

Share this page:

Market News Feb 2015

UK wide there has been stronger growth of staff appointments…

left laptopPermanent staff placements rose further in February. The rate of growth in appointments was marked and the fastest since last October….

…buoyed by improved demand for staff

Vacancies available for people seeking employment continued to rise in February. Overall demand for staff rose at the strongest rate in four months, with both permanent and temporary workers seeing faster increases.

Further marked rise in salaries

Permanent staff starting salaries continued to increase in February. The rate of growth was unchanged from the marked pace seen in January.

Candidate availability continues to fall

The availability of staff to fill job vacancies decreased further in February. Both permanent and temporary candidate supply deteriorated to a greater extent than in the previous.

Whilst in London and the SE…..

Permanent staff placements growth strengthens

Permanent placements increased further in February, continuing the trend shown since August 2012. Moreover, the

rate of growth accelerated since January, and was stronger than the average over the current sequence of expansion.

Share this page:

Key Points from the January Employment Survey

Key points from the January survey:


  • Permanent and temporary appointments rise, but rate of growth slows.
  • Vacancies increase at stronger pace.
  • Rate of decline in candidate availability moderates.
  • Slower growth of staff appointments…


Permanent staff placements continued to rise in January, but the rate of expansion eased to a 20-month low. Temp billings growth moderated slightly to the least marked since October 2014.

…despite accelerated rise in demand for staff

January data pointed to a faster increase in demand for staff, with the overall level of job vacancies rising at the strongest rate in three months. Sharper growth of both permanent and temporary vacancies was recorded.

Strong pay growth maintained

Average starting salaries for people placed in permanent jobs continued to rise at a marked pace in January, with the rate of growth quickening to a four-month high. Temp pay also increased further, but the latest rise was the weakest in nine months.

Slower fall in candidate availability

The availability of staff to fill permanent job roles fell further during January. The rate of deterioration was marked, despite easing to the slowest for a year. Temporary/contract staff availability meanwhile fell at the weakest rate in 11 months.

Share this page: