Report on UK Jobs – December 2016

The Report on UK Jobs is unique in providing the most comprehensive guide to the UK jobs market, drawing on original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour market trends.

The main findings for December are:

Growth in permanent staff placements softens slightly…

Recruitment consultants signalled a further increase in permanent staff placements during December, though the rate of growth softened slightly from November’s nine-month peak.

…as temp billings rise at faster rate

At the same time, temp billings increased at a sharp and accelerated pace that was the fastest seen since April.

Softer decline in candidate availability

The availability of candidates continued to decline at the end of the year, albeit at the weakest rate in over three years. Temp staff availability fell at the quickest rate in four months, while the drop in permanent staff availability was the softest since October 2013 (but still sharp).

Sustained upward pressure on pay

Starting salaries for successful candidates placed in permanent jobs continued to increase in December. Though solid, the rate of growth was the slowest seen for five months. Meanwhile, temp pay rates increased at the fastest pace since May.

Commenting on the latest survey results, REC Chief Executive Kevin Green says:

“The jobs market continues to beat expectations as we begin the New Year. More people are finding jobs each month, and demand for staff is growing. We’ve seen two months of growth in London, which is particularly encouraging following a difficult period between the EU referendum and October.”

“The big question for 2017 is about how employers will fill vacancies. The unemployment rate is at a record low and candidate availability for temporary jobs has been getting worse for the last three and a half years. There is an urgent need for people to fill roles in catering, care, and food manufacturing – in these sectors especially employers rely heavily on workers from the EU.”

 

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