Professional recruitment firms in the UK reported that the number of candidates securing permanent roles in February 2018 increased by 10% year-on-year, according to new survey data from the Association of Professional Staffing Companies.

APSCo’s data, which focuses on professional recruitment, showed notable variations between core sector groups in terms of hiring activity. Permanent placements within finance increased by 24% over the 12-month period. On the opposite end, the number of marketing professionals securing permanent roles during this time slipped by 6%.

Meanwhile, APSCo’s figures also showed that demand for contractors decreased across many of the trade association’s core sector groups. Vacancies within engineering, for example, fell by 6%, while demand within IT and marketing fell more significantly (by 7% and 18% respectively). Finance was the only sector where vacancies for non-permanent roles increased, with demand for contractors up by 11%.    

Vacancies for permanent staff remained steady, falling by 1% in February. Within the finance sector, vacancies were up 14%, year-on-year.

The overall number of contractors out on assignment, meanwhile, dipped by 17% during the same period. APSCo stated that the dip can largely be attributed to a 38% year-on-year fall in IT professionals working on a contract basis during this time.

According to APSCo, this is likely to be a result of significant changes around off-payroll working within the public sector which has created a climate where former contractors are turning their backs on working through their own PSCs (Personal Service Company).   

John Nurthen, Staffing Industry Analysts’ Executive Director of Global Research commented, “This month is a continuation of previous trends with the employment market showing growth in permanent vacancies but declines in temporary and contract positions. In an increasingly tight labour market, there is plenty of appetite among employers to hire people with the right skills. IT jobs have notably picked up since the decline we saw in spring 2017."

APSCo’s data also showed that median salaries across all professional sectors fell by 2% year-on-year, with IT and engineering recording uplifts of 4.1% and 3.8% respectively.

“We continue to see strong performance in the numbers of permanent placements which can primarily be attributed to two key factors: businesses are vying to secure rare skills in an increasingly competitive market, and uncertainty around the future status of more flexible working options,” Ann Swain, Chief Executive of APSCo, said.

“While changes to IR35 legislation in the public sector have clearly taken a chunk out of the contract market, a proposed consultation on extending reforms into the private sector means that employers are increasingly weighing up if the perceived complexity associated with managing a contingent workforce is worth it,” Swain said. “Add to this the present BEIS (Department for Business, Energy and Industrial Strategy) consultation on Employment Status coupled with widespread skills shortages and it’s no wonder that businesses are keen to lock in talent long-term.”