Januaryís Report on Jobs survey signalled that growth of demand for staff strengthened to a twenty-seven month high, underpinning further robust increases in permanent and temporary staff appointments, as well as maintaining substantial inflationary pressure on workersí pay.
The Report on Jobs, published today by the Recruitment and 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:
ìThis monthís survey provides further evidence of a tight recruitment market. With wage inflation at the top of the Monetary Policy Committeeís worry list, settlements will be watched closely over the next few months to see if these pressures are translating into pay increases more generally. In the meantime, further pre-emptive tightening by the MPC cannot be ruled out, which in turn is likely to cause employees to demand further increases in pay.
ìEmployers need to think more innovatively around how they can írewardí their employees. One such way is for employers to implement a corporate social responsibility programme. This offers the possibility of carrying out socially responsible activities in the local community during work hours which can help improve employee morale and loyalty.î
Also commenting on the report, Marcia Roberts, Chief Executive Officer, Recruitment and Employment Confederation (REC) said:
ìThe continued demand for staff once again highlights the important role that temporary workers have to play in helping employers fill vital gaps in their workforce. This is especially timely within the context of the new Private Members Bill which seeks to place greater regulation on the employment of agency workers. This would seriously limit the flexibility of the temporary working model and would, in effect, provide greater resource issues for employers already struggling to recruit the right staff.
ìMost interestingly, the report finds temporary staff salaries increasing at a very strong rate. This challenges the Trade Unionsí suggestion that temporary work is low paid.î
Strong growth of employment sustained...
Latest data signalled further increases in permanent and temporary employment in January. Growth of permanent placements remained strong, despite easing to a three-month low, while temp billings rose at the sharpest rate for five months.
...as demand for staff strengthened further
Underpinning growth of staff appointments was a further marked expansion in job vacancies. The rate of improvement in demand for permanent staff hit a twenty-seven month high, while demand for temp staff showed a further robust rise. Higher demand was broad-based across all broad categories of employment.
Skill shortages narrowed...
The availability of candidates for both permanent and temporary roles continued to decline in January. However, the respective rates of contraction eased since the previous month, suggesting that skill shortages eased.
...but pay pressures remained substantial
Inflation of permanent staff salaries remained close to Novemberís seventy-one month high in January. Panellists commented that salary increases were reflective of ongoing labour market tightness. Meanwhile, temporary/contract staff pay growth accelerated since December to reach its highest level for more than two years.
Latest data signalled further increases in permanent and temporary employment in January. Growth of permanent placements remained strong, despite easing to a three-month low, while temp billings rose at the sharpest rate for five months.
www.kpmg.co.uk
www.rec.uk.com
Demand for staff continued to strengthen in January
Demand for staff continued to strengthen in January, maintaining upward pressure on pay
