Staff numbers fail to fill Northern employment gaps

A REPORT has signalled the 27th successive monthly increase in permanent staff placements in the North of England, but there is a shortage of candidates for permanent jobs.

The survey Report on Jobs: North of England contains data compiled by the Recruitment and Employment Confederation and is designed to provide a comprehensive up-to-date guide to labour market trends.

The rate of expansion in July remained robust and was the second sharpest since September.

Growth was strongest in the Midlands, followed by the North, both of which saw sharper gains than the prior month. The South and London reported comparatively moderate rates of improvement.

However, the growth rate in temporary staff billings in the North eased to a 27-month low in July and was surpassed by the national average for the first time since April.

Recruitment consultants in the North reported a further marked deterioration in the availability of permanent candidates. That said, the rate of decline eased sharply to a five-month low and was noticeably less steep than that indicated by the national average.

Permanent staff salaries in the region improved for the forty-first successive month in July. Although the rate of inflation was weaker than in the prior month, it remained strong and above the national average. Just shy of 28% of surveyed consultants reported an increase in permanent staff pay.

REC chief executive Kevin Green said: “While demand for staff remains strong, the labour market is tightening. Alongside long-term problem areas such as technology and engineering, we’re now seeing vacancies in the North for accountants and drivers being flagged as hard to fill.”

Jon Holt, office senior partner at KPMG in Manchester, said: “We’re continuing to see an increase in confidence from Northern employers as the demand for permanent employees rises above the national average. Meanwhile, with increased political and economic certainty following last month’s Budget it is clear that businesses are doing all that they can to attract and retain talent across the North of England.

“Nevertheless, there is evidently an industry-wide skills shortage as businesses across the North are affected by a lack of both temporary and permanent workers.”