Employers facing recruitment frustration as fewer candidates available – reports

TWO reports on the West Midlands recruitment market have revealed that there has been fast growth in both permanent and temporary placements.

Accountancy and advisory firm KPMG’s The Report on Jobs: Midlands reveals that permanent placements continued to grow for the 26th consecutive month in September.

The pace of increase ticked up from the previous month, with almost 43% of surveyed consultancies noting a rise in permanent appointments in comparison to August. The UK as a whole, meanwhile, saw a further increase in the number of staff placed in permanent positions.
 
Recruitment consultancies in the Midlands registered a marked rise in temp billings in September. Furthermore, the rate of growth was strong, with close to 57% of firms noting higher temp billings in comparison to the previous month.

The UK as a whole also registered a rise, but at a much weaker pace compared with the Midlands.
 
Demand for both permanent and temporary staff in the Midlands continued to rise in September but data pointed to a marked decrease in the number of candidates for permanent jobs in the Midlands, stretching the current period of reduction to 17 months.

And the availability of temporary/contract staff in the Midlands decreased in September, with more than half of recruitment consultancies signalling a reduction.

Mike Steventon, Midlands regional chairman at KPMG, said: “The latest drop in unemployment figures is mirrored by the continued sharp rise in vacancies for both permanent and temporary roles, but whilst on the surface this may seem like positive progress, the outlook is not quite as rosy as it appears.
 
“The labour market in the Midlands is thinning again with fewer candidates available, which despite a need to recruit, leaves businesses struggling to find a suitable candidate.

“Wages continue to dominate the picture, with starting salaries for permanent roles in the Midlands accelerating above the national average.

“A time will come when this reaches a ceiling that businesses aren’t equipped to exceed, even to land the perfect employee, pushing the onus back on the candidate to decide whether they are looking for a quick financial reward or a long-term role offering career progression and opportunities.”

Meanwhile, a report from business funder Bibby Financial Services has revealed more West Midlands businesses are investing in their workforce in 2014 than any other region in the UK.

The firm’s quarterly SME Tracker, which surveys 1,000 businesses with turnover of up to £25m and employee numbers up to 250, found that where other regions have invested in new product development and technology, West Midlands businesses are choosing to invest in their people.
 
David Postings, UK CEO at Bibby Financial Services, said: “The West Midlands is a hotbed for growth and entrepreneurship and it is encouraging that businesses in the region have invested in recruitment and training over recent months.

“I believe it is these ambitious, growing enterprises that will help to fuel further economic stability throughout the UK.”

In relation to recruitment, West Midlands businesses were top, with 42% taking on new staff – nearly double that of firms in the South East), and comparable only to Yorkshire and Humberside.

The region was also the highest in the UK for investment in current staff (41%), above the UK average of 32%, and a significant rise from 29% in the second quarter of the year.

The findings coincide with the launch of Bibby Financial Services’ new office in Birmingham today.