News from the REC…
The IHS Markit/REC Report on Jobs – published today – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.
Permanent placements growth softens to four-month low
The number of people placed into permanent job roles continued to rise markedly in April. That said, the pace of expansion was the softest seen in 2018 so far. In contrast, growth of temp billings picked up from March’s 13-month low.
Candidate availability continues to fall markedly
Candidate availability for both permanent and temporary roles declined further at the start of the second quarter. Furthermore, the rates of reduction quickened to three- and five-month records, respectively.
Demand for staff strengthens
Pay growth gathers pace
Starting salaries for permanent workers continued to rise sharply in April, with the rate of inflation picking up from March. Concurrently, rates of pay for contract/temporary staff rose to the greatest extent for two years.
Scotland continued to record the steepest increase in temp billings when comparing all five monitored UK regions, while the North of England recorded the slowest.
Recruitment consultancies indicated that private sector demand for staff continued to rise in April, with growth of both permanent and temporary vacancies picking up since March.
Demand was also higher in the public sector, with steeper increases in vacancies signalled for both permanent and temporary staff. That said, rates of growth continued to lag behind those seen for private sector staff.
The vast majority of monitored job categories registered higher permanent staff vacancies during April. The steepest rates of growth were registered across the Engineering and IT & Computing sectors. Retail was the only category to record lower demand for permanent workers.
Blue Collar and Engineering were the most in-demand categories for temporary workers during April. Nonetheless, all of the remaining job sectors noted higher temp staff vacancies. The slowest growth was signalled for construction.
REC director of policy Tom Hadley says:
“Following the recent headlines about high street closures, it’s unsurprising to see demand for retail staff falling this month. With consumers increasingly shopping online, it’s a good time for retail workers to think about how their skills translate into other areas within the business – for example, recruiters say there’s huge demand for staff in IT, and there is also a shortage of order pickers and packers. Helping people make career transitions will become increasingly important in this fast changing business and employment landscape.