Record rise in permanent staff placements
THE growth of permanent staff placements reached a record high last month, figures released today reveal.
August data highlighted a sharp increase in permanent staff placements across the North, according to The Report on Jobs: North compiled by research group Markit for the Recruitment and Employment Confederation (REC) and KPMG, with the seasonally adjusted Permanent Staff Placements Index rising to its highest level in the survey history.
For the third consecutive month, all four English regions monitored by the survey recorded higher permanent staff placements. August data highlighted the strongest rise in the North, followed by the South, the Midlands and London respectively. At the UK level, permanent staff appointments expanded sharply.
Temporary/contract staff billings in the North rose at the sharpest pace in nine-and-half years during August, with more than 50% of panellists indicating higher temp billings.
The pace of expansion in demand for permanent workers across the North accelerated to the fastest in more than 15 years, while growth of demand for temp staff reached a nine-year high.
The availability of staff for permanent positions in the North decreased for the seventh month running in August. Despite being solid, the rate of contraction eased to the weakest since April.
The supply of candidates for permanent positions decreased in three other regions monitored by the survey and was most pronounced in the Midlands.
Permanent staff availability across the UK as a whole fell at a robust, but slower pace.
After adjusting for seasonal factors, temporary/contract staff supply across the North rose for the first time in three months during August. The rate of growth was, however, only marginal.
Recruitment consultants in the North reported higher salaries paid to newly appointed permanent staff in August. The rate of salary inflation was solid, but the weakest since January.
Similar to the trend seen for permanent salaries, temp rates in the North rose at a weaker pace in August, as indicated by the seasonally adjusted Temporary/Contract Pay Rates Index falling since July.
Chris Hearld, KPMG’s Leeds office senior partner, said: “Confidence amongst employers is gaining momentum, more so in the North than anywhere else in the UK, with permanent appointments growing at the fastest rate in the report’s 15 year history.
“The demand for staff is good news for prospective employees. In the current marketplace, organisations seem increasingly willing to pay more for top talent, with the latest pay figures continuing to rise. The rate of wage inflation though is lower in this region than the national average suggesting that, confident or not, employers on our doorstep are keen to pay the right price for the right person rather than simply racing to fill a vacancy.”
