Report on UK Jobs – March 2014

 

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 from the Report on UK Jobs for March are:

Permanent salary growth accelerates

Starting salaries for people placed in permanent jobs increased strongly in March, with growth picking up to the sharpest since July 2007. However, temporary/contact staff pay increased at the slowest rate in five months.

Steeper decline in candidate availability

Recruitment consultants indicated further reductions in the availability of candidates in March. Permanent staff availability fell at the sharpest rate since October 2004, while the latest
drop in temporary/contract staff availability was the fastest in almost 10 years.

Permanent and temporary appointments rise at slower rates

Rates of growth in both permanent and temporary staff appointments eased during March, but remained strong overall.

Further marked increase in vacancies

Demand for staff continued to rise at a marked pace in March, with the rate of expansion only just shy of January’s 151⁄2-year high.

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

“Britain may not yet be near the levels of full employment that Chancellor George Osborne committed to last week but, with permanent and temporary placements remaining strong, anyone looking for a new job must be increasingly confident that their search will soon be over. It’s particularly encouraging to note that employers are focusing on full-time employment, with more organisations offering contracts for permanent positions than temporary roles over the past month.”

“It also appears that employers are attempting to encourage candidates to move away from the short-term mentality of temporary roles by raising the bar with the starting salaries aligned to permanent positions. Today’s data shows ‘offer salaries’ picking up at their sharpest pace for almost 7 years, whilst contract staff saw their pay increase at the slowest rate since November 2013. It’s a welcome sign that employers have enough confidence to commit their balance sheets to long term employment plans.”

“If that wasn’t a clear enough indication that employment is on the up, the data also shows that demand for staff continues to rise. Marginally up on the figures for February, the latest data suggests that engineering, construction and IT are the sectors hungriest for talent. It’s all good news, but the next step will be for candidates to put themselves forward for the role on offer – something they still seem unwilling to do.”