Report on UK Jobs – February 2015

 

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 February are:

Stronger growth of staff appointments…

Permanent staff placements rose further in February. The rate of growth in appointments was marked and the fastest since last October. Temp billings meanwhile increased at the sharpest pace in five months.

…buoyed by improved demand for staff

Vacancies available for people seeking employment continued to rise in February. Overall demand for staff rose at the strongest rate in four months, with both permanent and temporary workers seeing faster increases.

Further marked rise in salaries

Permanent staff starting salaries continued to increase in February. The rate of growth was unchanged from the marked pace seen in January. Temporary/contract staff hourly pay rates also rose further, with the latest increase stronger than seen one month previously.

Candidate availability continues to fall

The availability of staff to fill job vacancies decreased further in February. Both permanent and temporary candidate supply deteriorated to a greater extent than in the previous month, with the former recording the sharper decline.

Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG, said:

“Recovery in the job market is gaining real traction, and this should help shore up consumer confidence in the run up to the election.”

“However, while the job market might be booming, demand for staff is by no means universal across the sectors. The recovery is being heavily driven by hiring activity by UK plc, while the public sector remains in a semi-stasis ahead of further anticipated cuts later in the year.”

“The availability of skilled candidates remains a significant concern and businesses are already fiercely competing to secure top talent. This dynamic is driving significant salary growth in pockets of the market, such as the IT and engineering sectors, where the demand/supply mismatch is particularly prevalent.”