Report on UK Jobs – November 2013

 

The Report on UK Jobs is unique in providing the most comprehensive guide to the UK labour 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 November Report on UK Jobs are:

Slower but still marked growth of staff appointments

The number of people placed in permanent and temporary/ contract roles continued to rise in November. Rates of expansion remained strong in both cases, despite easing to five-month lows.

Vacancies rise at strongest rate in over 15 years

Overall demand for staff increased at a faster pace in November. Growth was the sharpest since July 1998. Private sector demand for staff continued to show a much stronger trend than public sector demand.

Permanent salaries increase at fastest pace in six years…

Growth of permanent staff salaries accelerated further, reaching the strongest rate since November 2007. Temporary/contract staff pay rose at a solid pace that was sharper than in October.

…as decline in candidate availability gathers pace

The availability of candidates to fill permanent roles fell further in November, with the rate of decline quickening to the sharpest since July 2007. Temporary/contract staff availability meanwhile fell at the fastest pace in nine years.

Commenting on the latest Report on UK Jobs, Bernard Brown, Partner and Head of Business Services at KPMG, said:

“Six months ago – after almost five years of pain – most employers were wondering just how real the signs of recovery were. But people have short memories and, if the latest recruitment figures are anything to go by, they may well now be wondering what all the fuss was about. Business certainly seems to be more confident because, as 2013 draws to a close, organisations across the UK are maintaining their recruitment drive to the point that the rate of growth in vacancies has reached a 15 year high.

“Of course, it is never that simple. The opportunities may exist but employees don’t seem keen to take them, with the proportion of candidates making themselves available falling at the sharpest rate for six years. It may be that people are still worried about job security but it is more likely that we are seeing a return of the traditional winter slowdown in recruitment as staff are more focused on Christmas than careers. As a result employers are trying to tempt top talent to change jobs by offering more in the way of cash or incentives. It’s a tactic that may bring short-term success, but the risk of falsely inflating the jobs market must be considered. Left unchecked, it could put unnecessary and unsustainable pressure on businesses just at the time their cash flow problems are easing.”