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.

 

Commentary 

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…

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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.

 

 

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Market update: Salary inflation hits 31 month record!

Key Points

  • Strong rise in recruitment
  • Starting salary inflation hits 31-month record alongside lack of candidate availability;
  • Growth of demand for candidates declines slightly but still remains high.

Sharp Increase in Permanent Placements

Permanent placements have continued to rise each month for the past year-and-a-half. This growth has been linked to a greater demand for staff, although some panellists suggest that improved decision-making has also been a factor.

Increase in vacancies:

Overall demand has continued to rise in January.

Availability of Permanent Staff:

The number of available permanent candidates has continued to deteriorate in 2018. Key permanent staff skills reported in short supply includes paraplanners.

Higher Starting Salary Inflation:

Starting salaries for successful permanent candidates has increased at the fastest pace for over two-and-a-half years.

UK Unemployment Rate in Context:

The UK employment rate is at a four-decade low of 4.3% which is below the EU jobless rate of 7.3%. The jobless rates are higher in Austria (5.4%) and the Netherlands (4.4%), but lower in the US (4.1%), Germany (3.6%) and Japan (2.7%) in comparison to the UK.

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Brexit: A Ticking Time-Bomb for London’s Financial Industry?

Brexit: A Ticking Time-Bomb for London’s Financial Industry?

Fears are escalating as there are concerns that Britain’s vote to leave the EU in 2019 will harm one of its most successful industries…

The Impact of Brexit on the Financial Sector

The industry is crucial to Britain’s economy, accounting for 12% of Britain’s economic output and paying more tax than any other industry. Roughly one-third of the transactions within this sector involve clients in the EU.

There is a division among the population as to the impact Brexit will have on the industry. Politicians and economists warn that London may lose its renowned position as a financial centre. Conversely, those who voted leave support their decision, arguing that Britain will benefit through becoming more self-sufficient.

Indicators

The exact impact of Brexit cannot be predicted. However, below are some indicators to show that leaving the EU will encourage a slowdown in the economy but no drastic decline.

  1. Commercial Property

Highly-respected estate agents record that commercial property prices in London have dropped more since the Brexit vote than during the global financial crisis of 2009.

In terms of figures, the price renting of real estate has dropped by about 5% since last year. However, leasing activity in this area was 17% higher than the long term average in the first three-quarters of 2017.

  1. The Tube

Apart from a few exceptions, in general fewer people are using the tubes. The number of people using Bank and Monument stations is facing its first fall since 2009. A spokesman for Transport for London denies that the closure of some escalators at Bank station in response to the expansion was a significant cause of this change.

In terms of figures, the number of people using the above station declined by 2.7% from 2016-2017.

Although the number of people who using Canary Wharf station has continued to rise, the pace has slackened.

  1. Bars and Restaurants

Currently there appears to be no impact from Brexit of premises applying or renewing their licences to sell alcohol. In fact, the first eight months of 2017 showed these figures to be at a record high.

However, London’s night life no longer focuses on finance workers but attracts a diverse array of individuals. These findings may not be entirely pertinent for this study.

  1. London City Airport

This airport is selected especially by executives for flights to European cities and beyond. Statistics suggest that the number of such people using this airport faces its slowest increase in five years.

In terms of figures, the increase in passengers in the first six months of 2017 was only 0.9% compared to the average annual increase of 10% in the previous four years.

  1. Job Availability

The number of available jobs in London’s Financial Services has fallen the most in the five years.

A survey concluded that 51,922 new financial jobs were created in the first seven months of 2017. This is a 10% decrease in comparison to 2016.

It is estimated that around 10,000 finance jobs will be transferred out of Britain and placed overseas in the near future if Britain is denied access to Europe’s single market. The first type of jobs to be transferred may be at the lower end of firms, meaning that in the short term London may still cling onto its status as a financial centre.

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UKEF to Help UK SME’s Access Financial Support

UK Export Finance (UKEF), on Monday 16th October 2017, announced that it has launched a new partnership with five renowned high street banks – Barclays, Llyods, HSBC, NatWest and Santander – to provide SMEs with access to millions in government-backed trade finance.

What is UKEF? 

UKEF, as part of the Department for International Trade, provides financial support to help UK companies sell to international customers.

What are the implications of this new partnership?

Now that SMEs have access UKEF-backed finance, they have greater support to access major export contracts, to access growth markets worldwide and seize international trading opportunities.

SMEs can access UKEF finance directly from their banks, even if they have reached their credit limit or if the proposed contract is considered too great a risk for the banks to take on alone. Removing the often slow process of applying separately to The Department for International Trade as well as the banks, SMEs can easily access funds within seconds where the transaction is eligible. 

Does this scheme only benefit SMEs which are selling overseas?

No! This scheme also allows SMEs which supply products directly to overseas-selling companies to qualify for UKEF finance. This helps SMEs deliver their products into new markets and, by securing contracts with renowned UK exporters, SMEs can benefit from the global demand for UK goods and services.

 

 

 

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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.”

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The Week in Numbers – 14th September

The Week in Numbers – 14th September

50% – Rise in protection sales reported by LV= in the first half of the year. Total life sales hit £869m, with profits of £12mWebsite Photos 011

£8bn – Size of Jupiter’s Merlin fund range. Jupiter’s John Chatfield-Roberts has stepped down as CIO to focus on managing the funds

2.83% – Average interest rate on gross mortgage advances in Q2, the lowest figure on record

£2.1m – Pre-tax profits for Curtis Banks in the first six months of 2015, up 82% from £1.2m in H1 last year

£12bn – Amount the tax on bank profits will raise, almost twice the Government estimate, according to EY

218 – Number of IFP members who engaged in a consultation on the CISI merger out of a total membership of 2,173

70% – Proportion of those who engaged in the consultation who backed the IFP/CISI merger

£1.9bn – AUM at Parmenion, the platform and DFM acquired by Aberdeen Asset Management

 

Originally published in Money Marketing Magazine 10th Sept 2015

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The Week in Numbers – 5th August

The Week in NumbersWebsite Photos 070

£40K – Amount lost by Yorsipp member who complained to the Pensions Ombudsman claiming due diligence failures. The complaint was thrown out last week.

Up to 30% – Estimated hit to fund flows to pension providers if the Government radically reforms pension tax relief

£20m – Level of redress Cash Genie has agreed to pay 92,000 customers following a deal with the FCA

Five – Number of tracker funds on which BlackRock has cut charges with some fees reduced by half

Jan 2018 – Date of implementation for new account standards that could increase the cost of mortgages

18,000 – Number of guidance appointments delivered by Pension Wise since the launch in April, according to the Treasury

£486k – Size of the net estate left by Melita Jackson. Her decision not to name her estranged daughter as beneficiary has been overturned by the Court of Appeal.

 

Original figures published by Money Marketing Magazine 30th July 2015
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The Week in Numbers 11th June

The Week in Numbers – 11th June 2015blue news

8.7% – Year on year rise in the number of loans approved in April, from 105,394 to 114,628 according to the Bank of England

193% – Year on year increase in the number of people using an equity release plan to pay off their interest-only mortgage, from 78 in April to 229 this year, Age Partnership says

£4.3m – Money lost by 110 people who invested in a Ucis operated by eight individuals, five of whom were this week sentenced to a total of 26 years in jail

60 – Number of AR firms in L&G’s network, which the insurer plans to wind down by the end of 2015

20,000 – Potential job cuts due to be announced by HSBC next week, according to reports

£125.3m – Total value of investment trust purchases through platforms in the first quarter of 2015, a new record

£179,817 – The average UK house price in April, up 5.1% from £171,052 a year earlier, according to figures from the Land Registry

£5.6bn – Increase in assets under management at Henderson following the acquisition of three businesses in Australia

 

Figures originally published in Money Marketing Magazine 4th June 2015
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