Demand for employees remains strong in West Midlands
DEMAND for both permanent and temporary employees rose strongly in the West Midlands during August, according to latest figures.
The number of temporary employees finding work rose at the fastest rate since May 1998, while increases in both permanent and temporary staff vacancies were both sharper than those recorded in July.
The information is compiled in the latest Report on Jobs, which is compiled from data supplied by recruitment and employment consultants in the region. The report is designed to provide a comprehensive and up-to-date guide to labour market trends.
The number of permanent appointments increased for the 25th month running in August, but the rate of growth eased from the previous month to the slowest since June 2013. Although below the UK average for the second month in a row, the rate of growth in the Midlands remained strong and above its long-run series average.
August’s survey pointed to a further rise in temp billings in the Midlands, extending the current sequence of growth to 30 months. Although the weakest since July 2013, the rate of expansion was nonetheless marked and faster than the long-run series average. Moreover, it was higher than the UK average for the 13th month in a row.
Growth in permanent appointments was sharp across all four regions monitored by the survey, and led by the South of England. The Midlands, meanwhile, recorded the fastest increase in temporary billings ahead of the North of England, while London and the South of England posted comparatively slower (but still solid) rates of growth.
The current downturn in permanent candidates stretched to 16 months in August. The pace of decline eased from July’s series record, but nevertheless remained sharp and faster than both the series trend and concurrent UK average. Just under two-thirds of survey participants noted a reduction in permanent candidate supply.
In line with the trend in permanent candidate numbers, the availability of temporary candidates in the Midlands fell at a slower pace. August marked the 13th consecutive month during which temp candidate numbers have decreased. The UK as a whole also saw a reduction, though to a lesser extent than the Midlands.
August data showed sharp contractions in permanent staff availability in all four regions, the most marked of which was recorded in the Midlands, while the North of England posted the slowest rate of decline. Temporary candidate numbers also fell on a broad-based basis, down to the greatest extent in the Midlands followed by the South of England.
Commenting, Mike Steventon (left), Midlands Regional Chairman at KPMG, said: “It’s safe to say that the British economy has turned a corner and, as a result, we have continued to see an increasing demand for permanent and temporary candidates across the Midlands. However, the jobs market may not be in as strong a position as it appears.
“The number of appointments made in the region slowed during August, and whilst this could be down to holiday season, it may also be a reflection of a skill deficit among candidates applying for roles.
“The shortage of available talent is leading to increasing wages, which rose again in the Midlands last month, and while modest wage growth is healthy, excessive wage growth is indicative of a growing talent shortage which could dissuade organisations from locating or expanding their operations in the Midlands. Business and educationalists need to work together to develop the required skills in the requisite numbers to meet the markets’ needs.”
