The Jenrick Recruitment Group is pleased to report that Permanent salaries rise at fastest rate since December 2007 according to the latest UK Labour Market Report by KPMG and the REC.
"Record rate of private sector job creation signalled in October"
The latest batch of data comes off a series of positive articles that we have posted on the Jenrick Blog, all of which have pointed to a UK economy that is offering an abundance of interim, contract and permanent job opportunities across a diverse range of sectors, which include I.T. and Technology, Commercial, Engineering, Food and Drink and Energy. Here are some of the key highlights from the latest report:
Permanent placements continue to rise strongly
The number of people placed in permanent jobs rose further in October. The current period of expansion now extends to 13 months. Although easing slightly since September, the pace of expansion remained substantial. Around 43% of panellists noted an increase in permanent placements, versus 23% that indicated a decline. Anecdotal evidence highlighted improved client confidence and faster decision-making. All four monitored English regions saw higher permanent placements. The strongest growth was recorded in the Midlands.
Fastest rise in vacancies since June 2007
Demand for staff increased further in October, with the rate of growth quickening to the fastest in over six years. The Report on Jobs Vacancies Index registered 63.8, up from 63.6 in September. Marked increases in demand were signalled for both permanent and temporary/contract staff during the latest survey period.
Availability of permanent and temporary staff
Permanent staff availability continued to fall in October. Moreover, the rate of decline accelerated to the sharpest since November 2007. Lower permanent staff availability was signalled by 30% of panellists, twice the proportion that indicated a rise. The availability of candidates to fill temporary/contract roles fell further in October, with the latest reduction the fastest since June 2007. Temp availability decreased in all regions, with the Midlands posting the steepest drop.
Permanent salaries and Temp/contract pay rates
October data signalled a further rise in average starting salaries awarded to candidates placed in permanent jobs. Moreover, the rate of increase was the fastest since December 2007. Panellists attributed higher salaries to improved demand for staff and shortages of qualified candidates. Temporary/contract staff hourly pay rates continued to rise in October. A number of panellists commented that the uplift in the national minimum wage had acted to boost temp pay rates.
The key messages that came through the data was that permanent and contract vacancies are up, across all sectors, however there is a scarcity of suitably skilled candidates on the open job market. As a result, salaries and contractor day rates are also on the increase as employers compete for available talent.
"We gave up all hope of recruiting for a key managerial position after trying to recruit directly and through several agencies. However, we were contacted by Jenrick and they had someone in front of us interviewing for the role within a week; they were ideal for the role and have now worked with us for several months. We still don't know how Jenrick did it!"
If you are a company that has been struggling to fill roles within your organisation, please contact the specialist teams of Jenrick who can assist: