The latest Report on Jobs survey signalled that overall demand for staff expanded at the strongest rate in eleven months in January, supporting further robust growth of staff placements. Average wages and salaries continued to rise sharply. The Report on Jobs, published today by the Recruitment & Employment Confederation and KPMG, provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers, as well as data on national newspaper recruitment advertising.
Commenting on the latest survey results, Michael Carter, People Services Partner at KPMG said:
The continued rise in wages in January in both permanent and temporary roles, despite this month’s slow down in skills shortages, means that remuneration should be a key concern for employers as they attempt to retain and attract quality employees. Employers cannot afford to be complacent as employees expect and demand more as part of the price of staying loyal to a particular employer.
Undertaking a strategic review of remuneration packages may enable employers to identify attractive benefits that employees may value more than their current basic salary, but at a reduced cost. Such benefits could include training opportunities, increased holidays or home computers. Introducing elements of flexibility can help companies to attract, motivate and retain the right staff and differentiate them from their competitors.
Also commenting on the latest report, Gareth Osborne, Managing Director of the REC said:
This month’s report signals a shift in the UK job market as overall skills shortages become less pronounced. On the surface this may seem a positive trend but key sectors such as construction, engineering and accounting still struggle to fill vacancies. With graduate numbers at an all-time, high recruitment professionals will play a vital role in helping employers identify the best candidates.
Further robust growth of permanent staff placements and temporary staff billings
The number of people placed in permanent jobs by recruitment consultancies rose for a thirty-second consecutive month in January. That said, the rate of growth eased slightly from December’s fourteen-month high. Agencies’ billings from the employment of temporary/contract staff also continued to rise, with the rate of increase remaining robust.
Overall demand for staff expanded at the strongest rate in eleven months
Recruitment consultants indicated that overall demand for staff continued to rise in January. Moreover, the rate of growth reached an eleven-month high. Permanent staff demand recorded it strongest improvement in a year, while demand for temporary employees rose at the fastest pace in ten months. Nursing/Medical/Care recorded the strongest growth of demand for both permanent and temporary staff.
Marginal growth of actual employment
Data from the January PMI surveys signalled that growth of UK private sector employment was sustained, albeit at a marginal rate. Employment in the services and construction sectors rose at solid rates, but manufacturing staffing levels saw a further sharp decline.
Availability of staff declined at the slowest rate in three months
The rate of decline of permanent staff availability eased to the slowest in three months, suggesting fewer skill shortages. Meanwhile, the availability of temporary staff rose marginally for the first time since October.
Average wages and salaries continued to rise strongly
Latest data signalled further growth of staff pay in January. Permanent salaries rose at a strong rate that was above the long-run average for the series. Temporary staff pay also recorded a robust increase, albeit the least marked in four months.
To view the full report, please click the link below:
UK Job Market Boosted By Strengthening Demand For Staff
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