Report on UK Jobs – May 2016

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 May are:

Slower growth of staff appointments…

Permanent staff placements continued to rise in May, but the rate of expansion eased to an eight-month low. Temporary/ contract staff billings growth also eased, following April’s 13- month high.

…despite robust demand for staff

Vacancies rose at a marked pace in May, with the rate of growth quickening slightly since April. Stronger increases were recorded for both permanent and short-term employees.

Pay growth moderates…

Permanent staff salary growth eased to a 31-month low in May, although remained above the survey’s historical average. Having increased at the strongest rate in almost nine years during April (partly driven by the new National Living Wage), temporary/contract staff pay posted a slower but still marked rise in May.

…as decline in candidate availability eases further

Further reductions in staff availability were signalled in May. However, slower falls were indicated for both permanent and temporary/contract staff, with the latest declines the least marked in over two-and-a-half years.

Commenting on the latest survey results, REC chief executive Kevin Green says:

“UK businesses are now facing candidate shortages in nearly every sector of the economy. From engineering rms, to catering companies, schools and hospitals, we need more people with the right skills for the jobs that are available. Despite this, employers are showing uncertainty about hiring in the run up to the EU referendum.

“Whatever happens post June 23rd we need to ensure a sensible approach to immigration is taken, so that employers have access to the people they need. Sourcing workers from outside the UK is going to be an ongoing necessity if we are to continue seeing the British economy grow.

“The hospitality sector is a case in point. The latest data shows a surge in demand for staff from hotels and restaurants, as they expect many holidaymakers to stay in the UK this summer rather than travel abroad.

“The UK job market has been incredibly successful over the last seven years because of its dynamism and exibility. Policy-makers have a responsibility not to derail that success.”

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