Permanent staff appointments by recruitment consultancies across the UK remained unchanged in February according to the latest Report on Jobs from IHS Markit/REC (Recruitment and Employment Confederation) and professional services firm KPMG. The stagnation follows a marginal drop at the start of the year.

The stagnant trend for the year so far contrasts with steep increases through 2018, with panellists indicating that uncertainty around Brexit and a lack of suitably skilled candidates impacted on hiring. At the same time, temp billings rose at a steeper rate, after increasing only slightly in January.

At the same time, candidate availability declined further in February due to a high employment rate across the UK and a hesitancy to seek out new roles amid an uncertain outlook.

REC’s data signalled a sustained drop in the availability of workers to fill permanent job roles in the UK. February saw a further reduction in temporary candidate numbers which has been the case since July 2013.

Meanwhile, at 57.2 in February, the Report on Jobs Vacancies Index edged down from 58.9 in January to signal a slower, but still marked, increase in staff demand. Furthermore, the latest expansion in job vacancies was the softest since September 2016.

Demand for both permanent and temporary staff remained historically strong in February, despite softening since the start of the year. However, growth of permanent vacancies edged down to a 29-month low, while demand for short term staff expanded at the slowest pace since August 2016.

Turning to pay, starting salaries awarded to permanent workers continued to increase across the UK during February. Reports from panellists widely mentioned that higher pay offers were required in order to attract and secure candidates.

Meanwhile, temporary wages rose further across the UK midway through the first quarter of 2019. Though sharp, the rate of pay growth eased for the third month running to the slowest since January 2018.