The following report was published today by KPMG and the REC and is based on the UK Labour Market. (It’s good news, for once, and makes interesting reading!)
PERMANENT SALARIES RISE AT FASTEST RATE SINCE
- Sharper increase in salaries as candidate availability deteriorates further.
- Strong growth of permanent and temporary appointments maintained.
- Overall vacancies rise at sharpest rate in over six years.
Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG, said:
“For those who have set government policy the latest figures are great news, with higher numbers of job opportunities emerging alongside the sharpest increase in permanent wages for six years, as demand continues to strengthen.
“Another question that must be addressed revolves around whether increasing salaries is enough to entice job hunters to move between organisations. All the evidence suggests not, with permanent and temporary staff availability falling in recent months.
The statistics within the recruitment industry continues to show a strong and healthy increase with both permanent and temporary placements during October.
With placements rising in October, the current period of expansion now extends to 13 months. Although easing slightly since September, the pace of expansion remains substantial. Anecdotal evidence highlighted improved client confidence and faster decision-making. The strongest growth was recorded in the Midlands, while the slowest expansion was indicated in London.
Temporary and contract staff also increased for a sixth consecutive month in October. Although easing to the slowest since June, the rate of growth remained strong.
The Midlands continued to post the strongest temp jobs growth during the latest survey period, while the South registered the slowest rise. Demand for staff increased further in October, with the rate of growth quickening to the fastest in over six years.
Public & private sector vacancies
Private sector vacancies continued to rise at a faster pace than public sector roles. In the private sector, permanent staff saw stronger demand growth than temporary/contract workers, while in the public sector the reverse was true.
Other vacancy indicators
Data from the Office for National Statistics showed that job vacancies were up 12.5% on an annual basis in the three months to September.