REC/KPMG Report on Jobs: Staff appointments continue to rise strongly in September

REC/KPMG Report                 Released on 8 October                     Key points:

– Marked increases in both permanent placements and temp billings  – Permanent salary inflation sharpest since February 2008 – Vacancies continue to rise at marked pace – Candidate availability falls further

Summary: The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs – published today – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.

Strong growth of staff appointments maintained… Recruitment consultants signalled a further substantial rise in permanent staff placements during September. The pace of expansion was only slightly slower than July’s 40-month high. Temp billings similarly increased at a sharp rate, with growth close to the 15-year high seen in August.

…supported by marked expansion of vacancies Demand for staff continued to increase strongly in September. Growth of job vacancies was at a similar pace to that recorded in August, which was the fastest for over six years.

Candidate availability continues to fall… September data indicated a further reduction in the availability of candidates. Solid rates of decline were indicated for both permanent and temporary staff availability.

…contributing to further increase in pay rates Permanent salary inflation quickened slightly in September, reaching its sharpest rate since February 2008. Temp pay inflation also accelerated, with the latest rise only marginally slower than July’s five-and-a-half year high.

Regional and sector variation Permanent placements increased across all four monitored English regions, with the North continuing to register the sharpest growth.

The Midlands saw the fastest increase in temp billings during September, while the South posted the slowest rise.

Private sector demand for staff continued to rise at a substantial pace in September. In the case of permanent workers, the latest increase was the fastest since data were first available in December 2011.

In the public sector, demand for temporary staff improved at the sharpest rate in the series history, but permanent workers saw a slight fall in demand for their services.

Demand rose for all nine categories of permanent staff monitored by the survey in September. The strongest rate of growth was signalled for Construction workers, closely followed by Engineering staff. Hotel & Catering posted the slowest rise.

Growth of demand was broad-based across all nine temporary/contract staff sectors in the latest survey period. Engineering workers were the most sought-after. Mirroring the trend seen for permanent staff, the weakest growth was signalled for Hotel & Catering employees.

Source; REC The Voice of the Recruitment Industry 8th Oct 2013

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