Professional recruitment firms in the UK reported that the number of candidates securing permanent roles in December 2017 increased by 9% year-on-year, according to new survey data from the Association of Professional Staffing Companies.

APSCo’s data, which focuses on professional recruitment, showed that vacancies for permanent staff also increased by 1% over the same period. APSCo added that this growth is reflected in the most recent figures from the Office for National Statistics which reported in January that UK employment levels have reached a record high level, driven by an increase in full-time work.

Contract vacancies slipped 8% over the year. The number of contractors on assignment was also down 15%, year-on-year which APSCo attributed largely to a 36% year-on-year fall in IT professionals working on a contract basis during this time.

Demand for contractors decreased across every one of the trade association’s core sector groups.  Contract vacancies within engineering fell by 3%, while demand within IT and marketing fell more significantly (by 9% and 22% respectively). 

"While it is not unusual that hiring decisions take longer in December due to end-of-year budgets, staffing firms are reporting that employers are definitely waiting to see what might happen with the economy before committing to making a job offer,” John Nurthen, Executive Director, Global Research at Staffing Industry Analysts, said. “During 2018, we can be certain that the two factors that influenced the market so much in 2017 will continue to dominate: business uncertainty due to Brexit and a severe shortage of skilled candidates."

In its report, APSCo found that during December, much of the strength of the permanent recruitment market can be attributed to the financial services sector, where vacancies have increased by 13% year-on-year and placement are up 21%.

Contract vacancies within financial services, meanwhile, decreased by 3% year-on-year in December 2017 while the number of finance interims out on assignment dipped by 2% over the same period.

“The robust growth in permanent placements witnessed in December has been accompanied by a weakening in contractor markets as hiring companies opt for security of talent, against a backdrop of growing skills shortages in professional markets,” Ann Swain, Chief Executive of APSCo, said.

“This is particularly true within financial services, where demand for permanent staff has skyrocketed over the past year. This can most likely be attributed to enhanced confidence in the sector following fresh predictions that Brexit will not impact demand for talent within the square mile to the extent that many previously feared.”

APSCo’s figures also showed that median salaries across all professional sectors remain largely stable, increasing by 0.7% year-on-year. Financial services recorded a yearly increase of 3.1% and engineering saw a 2.1% rise over the year.