Permanent pay is rising, say recruiters

THE growth of permanent staff placements in the North continued for the ninth successive month, according to a survey of 100 recruitment consultants.

The Report on Jobs: North, compiled by research group Markit for the Recruitment and Employment Confederation (REC) and KPMG, said the rate of expansion has eased since December but was still ahead of the UK average.

But recruiters said the availability of candidates for permanent vacancies fell last month. Demand for temporary staff rose at the strongest pace since 1998 according to the report, but the availability of temp workers also fell.

Respondents said permanent salaries rose for the 23rd month running in January with the rate of inflation the strongest in more than six years. The picture was not the same for temp workers with weaker growth than in December.

Jon Holt, senior partner at KPMG in Manchester, said: “It is pleasing to see that Northern businesses are still ahead of the curve in making permanent appointments as the recovery takes hold. Meanwhile, temporary billings reached a 17-year high which indicates that some employers remain cautious and are looking for flexibility before committing to longer-term placements.”