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 January are:
Slower growth of staff appointments…
Permanent staff placements continued to rise in January, but the rate of expansion eased to a 20-month low. Temp billings growth moderated slightly to the least marked since October 2014.
…despite accelerated rise in demand for staff
January data pointed to a faster increase in demand for staff, with the overall level of job vacancies rising at the strongest rate in three months. Sharper growth of both permanent and temporary vacancies was recorded.
Strong pay growth maintained
Average starting salaries for people placed in permanent jobs continued to rise at a marked pace in January, with the rate of growth quickening to a four-month high. Temp pay also increased further, but the latest rise was the weakest in nine months.
Slower fall in candidate availability
The availability of staff to fill permanent job roles fell further during January. The rate of deterioration was marked, despite easing to the slowest for a year. Temporary/contract staff availability meanwhile fell at the weakest rate in 11 months.
Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG, said:
“They say good news comes in threes and it certainly seems to be the case for the UK economy. The past month has seen a rise in employment, a jump in the number of jobs being created and a growing number of firms prepared to pay more to land the best staff.”
“However, the good news is only half the story. Starting salaries may be continuing to rise for the jobs being created today, but this is unsustainable over the long term. Employers will reach a point where they cannot afford to keep throwing money at candidates, no matter how much their skills are in demand. We are some way off this happening, but if does, candidates who are in demand today might find it harder to knock doors down, tomorrow.”