The Report on Jobs is unique in providing the most comprehensive guide to the UK labour 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 July are:
Faster growth of permanent and temporary appointments…
The number of people placed in jobs by recruitment consultancies rose at a strong and accelerated pace in July. Permanent placements increased at the sharpest rate since March 2010, while temp billings were up at the fastest pace in almost two-and-a-half years.
…as demand for staff strengthens further
Supporting higher appointments was a further rise in demand for staff during July. Overall job vacancies increased at the strongest rate in six years.
Pay growth gathers pace…
The rate of inflation of permanent staff salaries quickened in July to its highest for over two years. Temp pay rates rose at the sharpest pace since January 2008.
…reflecting lower staff availability
Recruitment consultants indicated a decline in the availability of candidates to fill job vacancies during the latest survey period. Lower availability was signalled for both permanent and temporary staff, with the former registering the sharper fall.
Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG, said:
“With house price and service sector figures moving in an upward direction, indications are that the economy is getting stronger. Confidence is certainly evident amongst employers; with many conserving cash for a number of years, they are beginning to invest in their people and, as the search for talent is stepped up, the jobs market is looking buoyant again.
“High levels of demand for staff were signalled across every sector we analysed and the same can be said across each region of the UK. In a sign of the surge in confidence, the latest figures also represent the sharpest increase in permanent placements for more than 3 years and the biggest growth in demand for six. This does, of course mean that a gap exists between the demand for staff and the quality of candidates available so the onus is on candidates to improve their skills and prove their capability.
“If the current trend continues employers will, however, be faced with another conundrum. For some time staff have sat tight refusing to move when job security was low. Now the best staff will be looking for better offers so employers will need to strike a balance between recruiting new blood and retaining their best employees.”