The amount of candidates placed into permanent positions in the capital increased in October, following a marginal reduction at the end of the third quarter according to the latest Report on Jobs in London. The report, which is designed to provide a comprehensive and up-to-date guide to labour market trends also showed that the rate of expansion was the most noticeable since May and slightly faster than the long-running average. Permanent placements also rose at the UK level, albeit at the slowest rate in six months. The expansion was broad-based across each of the five examined regions, led by Scotland and the Midlands.
Billings from temporary & contract workers in London rose for the fifteenth consecutive month in October and this rate of growth has accelerated from September. Temporary billings also rose across the UK as a whole; a continuing a trend that has been apparent since May 2013. An expansion was reported in each of the five surveyed regions but was led by the North of England.
Demand for permanent staff in London continued to rise during October with the rate of growth increasing slightly from September and remaining among the sharpest recorded for two years. Demand for temporary staff also rose in October, however the growth of demand still remains weaker than the UK average.
Starting salaries continue to increase
Salaries for permanent employees in London increased in October, which has been the case for each month since May 2013. The rate of salary inflation has reduced from September but still remained noticeable overall. Salaries awarded to permanent starters also rose at the national level in October, thereby extending the current period of pay growth to five-and-a-half years. The quickest rate of inflation was recorded in the South of England, although sharp increases were also seen elsewhere.
Temporary pay rates also increased in the capital during October, stretching the current sequence of inflation to 13 months. Despite softening from September, the rate of growth was sharper than that seen across the UK as a whole. The rate of temp pay inflation at the UK level remained above the long-run series average despite weakening to a seven-month low.
Kevin Green, REC chief executive commented:
“Last month, recruiters helped even more people find permanent jobs – this is great news as it shows that employers are continuing to hire. However, the data also shows that growth is slowing down and one of the reasons is that we simply do not have enough people for all the roles that are out there at the moment. And the number of vacancies is still getting higher.
“For jobseekers this is good news as employers are willing to pay higher starting wages to attract the right candidates.
“We already know that EU workers are leaving because of the uncertainties they are facing right now. We therefore need clarity around what future immigration systems will look like. Otherwise, the situation will get worse and employers will face even more staff shortages.”
Robert Bond FIRP
Rob has a background in Sales and IT recruitment with over 25 years of experience in these sectors. He heads up the IT and Accountancy Divisions of Bond Williams and is also responsible for Bond Williams internal Operations and Finance. Alongside Claire, he is responsible for the overall growth and …