The latest IHS Markit/REC Report on Jobs has revealed that the number of people placed into permanent job roles has continued to rise drastically in August, with the rate of growth only slightly lower than July’s recent record.
Temp billings also rose substantially, with the rate of growth remaining the same from July’s 29-month high. The August data also indicated a further steep increase in staff vacancies. Furthermore, growth of demand for staff reached its highest since April 2015.
However the availability of candidates to fill these roles has continued to tighten noticeably in August at a rate quicker than July’s decline in availability. Temp staff supply also fell to the greatest extent in 20 months.
Starting salaries of roles has increased for the fourth month in a row in August and was the quickest rate of pay inflation seen since October 2015. Temp pay also increased at a faster pace, rising at a quicker rate than for the previous 16 months.
Demand for permanent workers rose across all monitored job categories during August. The steepest increase in vacancies was seen in IT & Computing, followed by Accounting/Financial.
Growth of permanent placements was strongest in the Midlands and the North of England. While in London, growth of placements showed only a marginal rate of expansion that was the slowest of all monitored regions.
Kevin Green, REC Chief Executivesays:
“As this month’s report clearly shows, employers are increasingly turning to recruitment agencies as it becomes harder to find the people to fill the jobs available. There are two trends at play. Businesses are seeking more professional and managerial capability, so we’re seeing high demand for roles like financial directors, analysts, and compliance and HR professionals. Meanwhile, there is a significant shortage of people to fill blue collar roles such as drivers, electricians, and construction workers, and this is being exacerbated by a fall in net migration from the EU.
“In many areas of the jobs market candidate supply cannot meet demand. Employers are having to offer more money to secure the people with the skills they need. While the working population in general has experienced a pay squeeze, there are clearly opportunities now to earn more by moving jobs.
“This is good news for individuals, but businesses will be concerned about the sustainability of this trend. Businesses can only grow if they have access to the people and skills they need. It is essential that the government recognises this by developing an evidence-based immigration system that will support the economy.”