Report on jobs paints a positive picture

THE rate of growth in firms taking on full-time staff across the North hit a 33-month high in December according to a survey of recruitment and employment consultants released today.

The UK Report on Jobs shows that permanent placements in the North of England increased for the fourth consecutive month in December with the rate of growth in recruitment the fastest since March 2010.

The Report, compiled by research group Markit for the Recruitment and Employment Confederation (REC) and KPMG, is part of a national survey of four regions: North, Midlands, South and London.

It also found that the availability of permanent staff decreased last month at its fastest rate since April 2008.

Continuing the trend that started in August, the report found temporary staff billings at recruitment firms across the North of England rose during December.

Permanent staff salaries in the North rose for the 10th successive month during December while contract pay rates also increased, the fourth successive monthly rise recorded.

Average starting salaries for permanent workers rose in all four surveyed regions during December with the rates of growth slight in London and the Midlands, solid in the South and sharp in the North.

Temporary pay rates increased in the North, the Midlands and the South of England with the rates of increase modest, sharp and solid respectively while temp rates fell in London.

Jonathan Hurst, KPMG’s Manchester-based Northern chairman, commented: “The North continues to lead the recovery in the wider UK jobs market, illustrating the resilience and entrepreneurial outlook of Northern employers.

“We expect this growth to continue – although it may be at a slower rate – as the economic picture becomes clearer. UK businesses have already responded positively to news that a fiscal cliff was avoided in the US.

”Contrary to the wider UK, which saw the pace of recruitment growth slow, expansion in the number of permanent staff placements in the North was at a 33-month high, suggesting improving confidence within Northern corporates that are demonstrating willingness to increase headcounts and target long-term growth against the uncertain backdrop.

“However, there are signs that employees in the North would rather stick with what they know as the number making themselves available for permanent roles dropped sharply, compared to a more modest decline nationally. This is despite permanent salaries in the North rising for the tenth consecutive month in December,” he added.

REC chief executive Kevin Green added: “We’ve now had four months of uninterrupted growth in people in the North of England finding permanent jobs through recruitment agencies and five consecutive months of growth in temporary job placements. It’s another milestone for the labour market, which hasn’t seen a rate of growth in permanent staff placements this high for almost three years.

“It’s also further confirmation of the continued strength of our flexible labour market in keeping people in employment.

“The picture for 2013 is likely to be similar to 2012, and we expect the labour market to yet again outperform the sluggish economic growth in the UK. Employers are confident in their own businesses if not the economy as a whole and know they have to retain or recruit talent in order to have a competitive advantage.

“In fact, the developing story this year is likely to be one of skills shortages as people with expertise in key areas become harder and harder to source.  We are already seeing this in areas like IT and engineering and recruiters are telling us that candidates are in short supply to fill jobs for drivers, chefs and carers.”