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 job market trends.
The main findings for September are:
Growth of staff appointments eases further…
Permanent placements continued to rise in September. However, the rate of expansion eased to a two-and-a-half year low. Similarly, temporary/contract staff billings increased at the weakest pace in the current 29-month period of growth.
…reflecting slower rise in vacancies
Although overall demand for staff continued to increase in September, the rate of growth eased to a 26-month low. Slower rates of expansion were signalled for both permanent and temporary vacancies.
Salary growth cools…
Starting salaries for people placed in permanent roles continued to increase in September. Although easing to a 20-month low, the rate of growth remained strong. Temporary/ contract staff pay growth meanwhile eased to an 18-month low.
…amid slower drop in candidate availability
The availability of staff to fill permanent job roles fell further in September. The rate of decline eased to the slowest in three months, but remained marked overall. Temporary/contract staff availability also deteriorated at a slightly slower pace.
Commenting on the latest survey results, Bernard Brown, Partner at KPMG, said:
“The pool of available skilled labour shrank yet further in September, dampening growth of both permanent and temporary placements. This relentless tightening of the labour market continues to push pay up in the private sector, and weekly earnings jumped by 3.4% year on year. While welcomed by workers, this uplift in pay could put downward pressure on firms’ profitability, unless labour productivity improves enough to compensate businesses for the higher wages now on offer.”
“Meanwhile activity in the public sector tells a very different story, with demand for staff declining and pay increases falling to an austere 1%. With further cuts planned this is a workforce that needs substantial investment in training and development to help its staff take on their new and evolving remits.”