Permanent placements continue strong growth trend reveals REC
The Markit/REC Report on Jobs for November has been released and shows that the number of people placed in permanent roles has increased for the third month in a row. The rate of growth is the steepest recorded in eight months. Temporary/contract staff placements also increased at a faster rate at the start of the fourth quarter, with the rate of growth accelerating to a five-month high.
In the latest survey period the strong increase in staff appointments was supported by increased employee vacancies and demand for both permanent and temporary staff which was at the highest since May.
However, the availability of permanent candidates continued to decline in October, and faster than September. Meanwhile, the availability of temporary/contract staff saw the smallest decrease in four months.
Permanent staff have enjoyed a further rise in salaries in October, with the rate of increase at its strongest in five months. The increase in hourly pay rates for temporary and contract staff meanwhile accelerated slightly from September’s 40-month low, but remained slight overall.
Recruitment consultancies saw sharp increases in vacancies for both permanent and temporary posts with demand for private sector staff remaining strong in October. The demand rose for all permanent staff categories to varying degrees with Engineering maintaining the lead, followed by IT & computing. Meanwhile, demand was weakest for permanent roles in hotel & catering and Executive/Professional saw the slowest rate of growth.
REC chief executive, Kevin Green, said,
“Despite ongoing uncertainty the UK jobs market is thriving again in most areas of the UK. Job vacancies are back to levels not seen since April, and for the third consecutive month recruiters have reported an increase in the amount of people finding permanent jobs.
“This is a great place to be but there are real threats coming over the hill. Candidate availability has been falling for three and a half years. There are more vacancies than there are people to fill them in many sectors, including engineering, construction and healthcare.
“The government urgently needs to outline a strategy to address employability skills within UK education and promote apprenticeships and other routes into work. We also need immigration policies that reflect immediate labour market needs. Imposing new restrictions on people coming from abroad to fill vacancies will impact businesses’ ability to meet demand as well as the delivery of public services.
“We need Britain to remain open for business. We can’t afford to see businesses relocate overseas, taking jobs with them and leaving us poorer as a nation.”