Permanent placements and temporary billings in the UK both increased at softer rates in November, however the growth in permanent staff appointments was the second-weakest since October 2017, while temp billings expanded at the joint-weakest rate for just over two years. This is according to the latest Report on Jobs from IHS Markit/REC (Recruitment and Employment Confederation) and professional services firm KPMG.

The Report on Jobs’ data signalled a twenty-eighth successive monthly increase in the number of people placed into permanent job roles. Growth was generally linked by respondents to robust demand for staff. However, there were also reports that uncertainty linked to Brexit and candidate shortages had limited the overall upturn in placements.

Recruitment consultancies signalled a further increase in billings received from the employment of temporary/contract staff during November, however this was at the joint-weakest rate for just over two years. For temp billings, the report suggested that clients had taken on short-term staff to support growing business requirements.

While staff appointments reported a slower rise in November, job vacancy growth edged down to a 25-month low. This was driven by a slightly softer increase in permanent job openings, as temp vacancies rose at a fractionally faster pace. Job vacancy growth remained sharper for the private sector.

Meanwhile, the overall availability of staff continued to decline sharply in November. This was despite the rate of reduction easing to the weakest since March, helped by softer falls in the supply of both permanent and temporary candidates. The report noted that permanent staff availability continued to decline at a quicker rate than seen for temporary workers

The continual tightening of candidate availability has led to a further upward pressure of pay with further marked rises in pay for both permanent and temporary staff. Notably, temporary wages increased at the quickest rate since July 2007. Permanent starting salaries meanwhile rose at one of the sharpest rates seen in the past three-and-a-half years.

“Today’s report backs up what recruiters across the country are saying to us,” Neil Carberry, Chief Executive of the REC, said. “High employment rates and a lack of willingness to change employer in this uncertain climate means fewer people are looking for jobs – despite rising pay and jobs being available.”

“After a long run of strong performance, it seems that employers are getting more nervous as well,” Carberry said. Although permanent and temporary placements continued to increase, the pace of growth has slowed since earlier in the autumn.

James Stewart, Vice Chair at KPMG, also commented, “Despite the uncertainty around Brexit, companies are still recruiting. It’s very much a candidates’ market at the moment and demand for workers is driving a sharp increase in starting salaries. It’s been getting harder and harder for firms to find good staff and with UK immigration policy likely to tighten, this trend isn’t going to get any easier.”

“Concerns about a no deal Brexit are putting a handbrake on the supply of candidates as the value of job security and stability shoot up people’s personal agendas,” Stewart said. “However, candidates who are prepared to take a chance and job hop can often bag a pay rise as a result. This is especially apparent in sectors like IT, engineering, hospitality and finance where quality candidates now come at a sizable premium."