Market Commentary Nov 18 – Demand still high

  • Steeper increases in permanent placements

  • Starting salary inflation close to September’s recent high

  • Steeper decline in candidate supply

Commentary

 “firms continue to hire new staff at near record rates. With the jobs market so heated, businesses across the country, of all types, are struggling to find work ready staff. Some clients tell us they are seeing the worst period of staff availability for many a year. A four-decade low in unemployment means good candidates are at a premium. Consequently, we’re seeing wages pushed upwards and now may be a good time to move to secure  a pay rise!

Key points 

  • Staff appointments increase at quicker pace…
  • The number of people placed into permanent jobs rose at a sharp and accelerated rate in October.

…as demand for staff remains robust

  • Growth of demand for staff remained historically sharp at the start of the fourth quarter.
  • Starting salary inflation continues to rise…

…driven by sustained fall in candidate availability..

  • Overall candidate availability declined at the quickest pace for nine months in October.

 

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 Early Autumn market update: Starting salaries rise at fastest rate since April 2015, as candidate availability drops further..

  • Starting salaries rise sharply amid steep reduction in candidate supply
  • Permanent placements expand at slightly weaker pace
  • Vacancy growth softens to near two-year low, but remains strong

Companies generally are struggling to find the people they need to drive growth and opportunity. 

Permanent placements growth softens…

Permanent staff recruitment continued to rise at the end of the third quarter, albeit at a softer pace. Nonetheless, growth remained sharp…

…as candidate availability drops further

We have found there is continued difficulties regarding the availability of staff for the vacancies we have. Although easing since August, the rate of deterioration in permanent staff availability remained sharp.

Starting salary inflation reaches 41-month peak…

Starting salaries for people placed into permanent jobs increased at the quickest pace since April 2015 during September.

…as demand for staff remains strong

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Further marked rise in recruitment

 Key points market indicators :

  • Steep increases in permanent placements
  • Severe staff shortages leads to quickest rise in starting salaries for three years
  • Staff vacancies expand at the quickest pace since last November

Despite growth in demand for staff this month, there has been another drop in staff availability. There has been a rise in client recruitment indicating that employers are feeling confident in making hiring decisions but a lack of candidates remains a major challenge

Because of the lack of candidate availability we are seeing employers paying higher salaries to attract the right people. This is only part of the solution, with employers also having to think about providing a more flexible working environment and progression opportunities. With skills needs and candidate expectations continuing to evolve, employers are having to radically re-imagine their hiring procedures.

Appointments continue to rise strongly…

Permanent appointments continued to rise at a robust pace, despite growth softening to a five-month low.

…as demand for staff strengthens

Growth of demand for staff strengthened to a six-month high in May, with sharp increases in permanent roles .

Sharp fall in candidate availability…

Overall, candidate availability declined at a sharper rate midway through the second quarter. Candidate numbers fell at the fastest rate for four months, while short-term staff availability deteriorated at the quickest pace since last November.

…leads to steepest increase in starting salaries for three years

Strong demand for staff and low candidate availability underpinned further increases in starting salaries and temp pay. Notably, salaries awarded to successfully placed permanent workers rose at the steepest rate for three years

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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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Declined pace in permanent placements, candidate shortages and higher salaries

October Report on Jobs

Key Points from the September Survey

  • Permanent placements rise at weakest pace for five months
  • Candidate shortages continue to drive up pay rates


1. Staff Appointments

Growth in permanent staff appointments eases

The number of people placed into permanent job roles continued to increase in September, stretching the current sequence of growth to 14 months. Though solid, the rate of expansion was the slowest recorded since April. Evidence indicated that strong demand for permanent staff across both new and existing clients supported the latest upturn. However, there were some reports that a lack of suitably skilled candidates had weighed on overall growth.

On a regional basis, growth of permanent placements was the most marked in the Midlands and the South of England.

2. Vacancies

Vacancies continue to rise sharply

There has been a further sharp increase in demand for staff. Steep growth of demand was signalled for permanent staff during September.

Other vacancy indicators

Data from the Office for National Statistics (ONS) indicated that job vacancies rose by 3.2% year-on-year in the three months to August. This was down only slightly from a 3.5% increase in the preceding three months.

3. Staff Availability

Availability of permanent staff

The availability of permanent candidates continued to fall sharply in September. Notably, the rate of reduction was the most marked for four months.

The South of England continued to record the steepest drop in permanent candidate numbers, though all remaining UK regions also saw sharp rates of contraction.

4. Pay Pressures

Permanent Salaries

Although the rate of salary growth softened since August, it remained sharp overall. Evidence indicated that a shortage of suitable candidates had placed upward pressure on pay.

The South of England saw the steepest increase in permanent starting salaries of all monitored UK regions, followed by Scotland.

5. Vacancies – Feature

Latest labour market data published by the Office for National Statistics (ONS) indicated that there were 774,000 job vacancies for June to August 2017. This represented an increase of 24,000 compared to the same time last year.

The official numbers back up the strong increases in staff demand. Notably, the ONS data indicated that the number of job vacancies in 2017 have exceeded any level since the series began in 2001. Vacancies broken down by sector revealed that the vast majority of unfulfilled roles (687,000) were in the services sector.

 

Simon Bean, Managing Director of Recruitment Connection says:

“The above trends highlight that it is becoming increasing difficult to fill vacancies for permanent roles. The shortage of suitable candidates has in turn triggered increased pressure on salaries.”

“The struggle to recruit for permanent places, particularly in the financial sector, resonates throughout the UK; London, however, has been hit the hardest and placements have declined for the first time in eleven months.”

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Continued high demand leading to key shortages and increasing salaries…

Key August points

  • Permanent placements rise
  • Demand for staff increases at fastest rate since April 2015
  • Candidate availability declines at quicker pace, pushing pay rates higher

Commentary: Employers are finding it harder to find the people to fill the jobs available. In many areas of the jobs market candidate supply cannot meet demand. Employers are having to offer more money to secure the people with the skills they need. This is good news for individuals, but businesses will be concerned about the sustainability of this trend as businesses can only grow if they have access to the people and skills they need.

UK wide …

Staff appointments continue to rise sharply in August

The number of people placed into permanent job roles continued to rise sharply in August

Staff vacancies rise at quickest rate for 28 months

August showed a further steep increase in staff vacancies. Furthermore, growth of demand for staff reached its highest since April 2015.

Pay growth strengthens…

Growth of permanent starting salaries accelerated for the fourth month running in August. Notably, it was the quickest rate of pay inflation seen since October 2015.

…amid further drop in candidate availability

The availability of candidates to fulfil permanent job roles continued to decline sharply in August.

In the South of England there was a sharp increase in permanent placements in August

Permanent placements rise at sharper rate

The number of people placed into permanent roles in the South of England increased for the thirteenth successive month in August.

Faster drop in permanent candidate supply

There has been a further deterioration in the availability of permanent staff in August and one of the key notable shortages in the SE has been paraplanners.

 

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Demand for staff is growing within all sectors and all regions of the UK.

The key points changes this month

  • Permanent placements increased but at a slower pace
  • Salaries continue to rise in April
  • However, the availability of permanent candidates continues to reduce

Slowest increase in permanent placements since Sept 2016

The number of permanent placements increased across the UK, though at its slowest pace for seven months. The strongest pace of expansion was in the Midlands, with the slowest in London.

Supply of candidates drops sharply

A drop in job seekers for permanent positions has seen the availability of candidates continue to reduce at its quickest pace for 16 months, with most markedly in the South.

Salaries continue to increase

Salaries for permanent staff continued to rise but at a slower pace to previous months. The highest increase has been seen in the South, followed by Scotland and the Midlands. The demand for quality staff and competition for skilled candidates has driven salaries higher.

Demand for staff remains sharp

There is a strong demand for permanent staff and vacancies continued to rise considerably throughout April.

Commentary : Demand for staff is growing within all sectors and all regions of the UK, but there are fewer and fewer people available to fill the vacancies. The UK ha the lowest unemployment rate since 2005, and people already in work are becoming more hesitant about moving jobs amid Brexit uncertainty. Meanwhile, the weakening pound and lack of clarity about future immigration rules is putting off some EU nationals from taking up roles in the UK.

As a result, candidate availability is at a 16-month low and there is a  shortage of suitable applicants for a variety of  roles. Every shortage has wider implications, for example the exceptional reputation UK engineering enjoys globally is at risk because employers can’t find people with the skills they need.

One thing is for certain, if British business is to thrive then whichever party forms a government after 8 June needs to address the ever-shrinking pool of suitable candidates by investing in skills and career advice for UK jobseekers, as well as safeguarding access to the workers we need from abroad. It is vital that the future immigration system is agile enough to reflect and adapt to evolving labour market needs.

 

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Changing employers is becoming a more attractive option for those looking for more money…

Growth in placements reaches one-year high

Key points from the February survey:

  • Permanent placements increase at quickest pace in one year…
  • Demand for staff reaches 18-month peak

Although permanent placements have hit a 12 month high, businesses across the UK are finding it increasingly difficult to recruit for permanent roles. The big question still remains about how employers will fill their vacancies.

There are  acute staff shortages in a variety of sectors, from healthcare to engineering. This is likely to get worse, especially if the Government continues to refuse the rights of EU citizens living in the UK post-Brexit.

On the flip-side, this is a good time for individuals prepared to move jobs, with bumper pay offers on the table as hirers compete to secure the talent available. In the context of rising inflation and stagnating pay growth, changing employers is becoming a more attractive option for those looking for more money.

Stronger growth of permanent staff placements

Growth in permanent placements picked up from January’s recent low to reach a one-year high in February.

Demand for staff reaches 18-month peak

Job vacancies continued to increase in February. Overall, demand for staff rose at the quickest rate in one-and-a-half years, with both permanent and temporary workers seeing faster increases.

Candidate availability declines at faster pace

The availability of staff to fill job vacancies declined sharply in February. Both permanent and short-term candidate supply deteriorated and to a greater extent than at the start of the year, with the former noting the steepest rate of reduction.

Sharper increase in salaries

Starting salaries for candidates placed into permanent roles increased at the quickest pace since March 2016 in February.

 

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Permanent placements see stronger growth in October

blue news

Key points from the October survey:

  • Permanent placements growth reaches eight-month high 
  • Demand for permanent candidates at its highest since May
  • Decline in staff availability

Despite ongoing uncertainty the UK jobs market is thriving again in most areas of the UK. Job vacancies are back to levels not seen since April, and for the third consecutive month recruiters have reported an increase in the amount of people finding permanent jobs.

Permanent and temporary placements rise solidly…

The amount of people placed in permanent roles increased for the third month running in October. Moreover, the rate of expansion quickened to the steepest recorded in eight months. 

…as demand for staff improves further

The robust increase in staff appointments was supported by increased employee vacancies in the latest period. Furthermore, demand for both permanent staff was at the highest since May.

Stronger increase in salaries

Permanent staff starting salaries rose further in October, with the rate of increase picking up to its strongest for five months.

Further drop in candidate availability

The availability of permanent candidates continued to decline in October, and at a steeper rate than in September.

Availability of permanent staff

Permanent staff availability deteriorated during October, thereby extending the current trend to three-and-a-half years. Furthermore, the rate of reduction was sharper than seen in the previous month.

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Market News in brief April 16

Contrasting trends in permanent and temporary appointments

The number of people placed in permanent jobs continued to increase during March. That said, the rate of growth eased to a six-month low. Temporary/contract staff billings on the other hand rose at the sharpest pace in four months.

Slowest rise in vacancies since June 2013

March data pointed to softer growth of demand for staff. The latest increase in overall vacancy numbers was the least marked for 33 months. Both permanent and temporary staff saw weaker rates of growth.

Candidate availability remains tight

The availability of staff to fill job vacancies was reported to have deteriorated further in March. The sharper drop was indicated for permanent staff availability, which fell at a slightly sharper rate than in February. Temporary/contract staff availability however declined at the slowest pace in two-and-a-half years.

Further marked pay growth

Average starting salaries for people placed in permanent jobs continued to rise in March. The rate of growth remained strong, having quickened slightly since February. Hourly rates of pay for temporary/contract staff meanwhile increased at the sharpest pace in three months…

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