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UK – Permanent placement and temp billings up, but temp pay growth reaches 40-month low

07 October 2016

The latest data from the Markit/REC (Recruitment and Employment Confederation) Report on Jobs showed a second straight monthly rise in permanent staff placement volumes for September.

The report also revealed that temporary/contract staff billings rose, but at a slower pace compared with August’s three-month high. Meanwhile, hourly rates of pay for temporary/contract staff eased to a 40-month low.      

Demand for staff continued to rise in September, with the pace of growth picking up to a three-month high. The strongest-performing category for permanent staff was Engineering, while Hotel & Catering workers were the most sought-after type of temp staff. However, the availability of staff to fill permanent roles continued to fall in September.  The rate of decline eased to the slowest in almost three years. Similarly, temporary/contract staff availability deteriorated at a weaker pace.

“This month’s report contains further evidence that UK employers have shrugged off the initial shock of the referendum result,” REC Director of Policy Tom Hadley said. “Overall, permanent hiring is in growth for the second consecutive month. Even more, encouraging is the growth in vacancies; consumer confidence and strong demand on businesses has ensured that hirers are creating new jobs.”

According to the report, average starting salaries for candidates placed in permanent jobs rose further in September. Moreover, permanent placements rose fastest in the Midlands during September. However, London saw a further reduction in volumes.

“There remains a degree of caution in London, where permanent hiring has been on pause for the last five months,” Hadley said. “This is likely to be because of uncertainty around the longer-term impact of the referendum result within the financial sector in particular.”

 The growth of short-term staff billings was broad-based across the monitored English regions in the latest survey period, but Scotland saw a decline.

 Private sector demand for staff continued to rise in September, with permanent and temporary roles both seeing growth.  In the public sector, temporary vacancies rose at a moderate pace whereas available permanent roles continued to fall.

 Engineering was top of the demand in September, ahead of Nursing/Medical/Care and IT & Computing. At the bottom of the table was Construction, which recorded only a marginal increase.    

Hotel & Catering was the most sought-after category within temporary/contract staff in September, with Engineering in second place. As with permanent staff, Construction posted the slowest rise.