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 October are:
Staff appointments continue to grow strongly…
Recruitment consultants signalled further increases in both permanent placements and temp billings during October. Although easing marginally since September, the rates of expansion remained considerable.
…supported by sharp rise in vacancies
Overall demand for staff rose at the fastest pace since June 2007. Higher vacancy levels were signalled for both permanent and temporary workers, in both the public and private sectors and across all monitored job categories.
Permanent salary inflation accelerates…
Starting salaries for successful permanent candidates rose further in October, with the rate of increase accelerating to the strongest since December 2007. Temp pay rates also rose, albeit at the slowest pace in four months.
…amid growing shortages of qualified candidates
Steeper falls in both permanent and temporary staff availability were reported in October, with the rates of decline the sharpest in around six years.
Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG, said:
“For those who have set government policy the latest figures are great news, with higher numbers of job opportunities emerging alongside the sharpest increase in permanent wages for 6 years, as demand continues to strengthen. Whilst this is a sure sign of economic recovery, we must not get complacent because, in the higher earning bracket, left unchecked wage inflation will bring different challenges to businesses who strive for profitable growth.
“Another question that must be addressed revolves around whether increasing salaries are enough to entice job hunters to move between organisations. All the evidence suggests not, with permanent and temporary staff availability falling in recent months. It means employers cannot rely on wages alone as a hook to attract top talent. The time has come for them to develop a raft of offers as part of the overall remuneration package. If they fail to do so, they will struggle to recruit and bring their organisation back to pre-downturn levels.”