11 July 2017
Vacancies rise and candidate pool decreases – Markit/REC June report

The latest report from Markit/REC on jobs for June 2017 found that positions and staff demand were on the up last month, but the number of candidates available continues to decrease for both permanent and temporary roles. The rate in which staff demand rose was the fastest in 19 months as the hourly pay rate hit a 6-month record. In contrast to this, the number of temporary labour positions decreased the quickest it has in the last 18 months.

Key points from the latest report include:

  • Permanent placements and temp billings continue to rise
  • Availability of candidates continues to decline sharply
  • Starting salaries increase at quickest pace for just over a year-and-a-half

The report also shows that the growth in temp billings slowed in June, but remained good. The sectors that found the highest increase in demand for permanent staff were in engineering and accounting / financial according to recruitment agencies.

The hotel and catering sector witnessed the highest demand for temporary staff in June, overtaking nursing/medical/care sectors for the top spot as the sun continues to shine and the tourist season is in full swing.

Regionally, Scotland witnessed the sharpest grown in permanent placements and the strongest upturn in temp billings of all monitored UK regions and the weakest rate of expansion was recorded in London.

Tom Hadley, REC Director of Policy, comments: “With fewer people currently looking for jobs, employers are having to increase starting salaries to secure the talent they need. This is creating great opportunities for people with in-demand skills who are prepared to change jobs, but it’s also putting unsustainable pressure on many businesses.

“Existing skills shortages are being exacerbated by Brexit. For example, demand for accountants and other financial roles has increased recently as organisations try to protect themselves against economic uncertainty. London alone employs almost 200,000 EU nationals in these roles. Policies which make it more difficult to recruit and retain these people will put business growth at risk.

“Investment in training the domestic workforce is vital to the long-term health of the jobs market, but it won’t allay employers’ fears about losing access to workers from the EU. The government needs to outline a five-year roadmap for post-Brexit immigration policy to enable businesses to plan effectively, and so the UK economy can flourish.”

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