UK: Staff placements fall at fastest pace for almost three years 9 Jul 2012Staff placements fall at fastest pace for almost three years
- Permanent and temporary appointments both decline at sharpest rates since July 2009
- Candidate availability continues to rise
- Wages and salaries stagnate
- IT & Computing and Engineering/Construction most in-demand categories for permanent staff; Hotel & Catering weakest performer
The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs – published today – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.
Reductions in both permanent and temporary appointments…
Permanent placements fell for the first time in six months during June, and at the sharpest rate for just under three years. Temporary/contract staff billings were down for the seventh month running, with the rate of decline accelerating to the fastest since July 2009.
...as vacancy growth slows further
Overall demand for staff showed the weakest increase for five months in June. Growth of permanent vacancies eased further, but temp vacancies rose at a fractionally faster pace.
Availability of staff continues to rise
Recruitment consultancies indicated higher levels of both permanent and temporary staff availability during June, with the latter recording the stronger growth.
Pay rates stagnant
Average salaries for people placed in permanent jobs were broadly unchanged in June, while temporary/contract staff hourly pay rates were also stable.
Regional and sector variation
London, the Midlands and the North all registered lower placement volumes during the latest survey period, with only the South bucking the trend by posting growth. Lower temp billings were recorded in all monitored English regions with the exception of the Midlands, which posted solid growth.
IT & Computing and Engineering/Construction were the most in-demand types of permanent employee during June. For temps, Nursing/Medical/Care staff saw the strongest demand growth.
Recruitment and Employment Confederation chief executive Kevin Green says:
“The sharp drop in the number of people placed into work last month is really disappointing. A decrease in hiring activity means we could see a period of increased unemployment, especially as a new wave of school leavers and graduates will be entering the labour market over the summer.
“The UK labour market has been remarkably resilient throughout the downturn and our slow economic recovery. However, employer confidence is fragile and it’s not that surprising that under the weight of the eurozone crisis and other bad news placements fell in June.
“I expect as we continue to make slow progress out of recession that we’ll see this kind of a zig-zag pattern with some good months followed by weaker ones – rather than sustained periods of uninterrupted jobs growth.
“There is still demand for workers and vacancies continue to rise. Recruiters tell us that employers are still hiring, but their increased sense of caution is manifesting in them taking longer to make decisions and to confirm hires – and that slow down in the recruitment process is clearly having a negative impact on the number of placements.
“But it’s also important to note that the picture is not uniform across all industries. If you are a skilled engineer, IT professional or in nursing or secretarial work there is still increasing demand for you from employers.”
Bernard Brown, Partner and Head of Business Services at KPMG, comments:
“After five months of consecutive growth, the latest recruitment data comes as a sobering reminder that we’re far away from a confident economic situation. Indeed, with both permanent and temporary appointments declining at the sharpest rate in nearly three years and overall demand for staff showing the weakest growth since the start of 2012, the outlook would appear bleak.
“Of course, we must remember that these figures have come on the back of months of uncertainty in the Eurozone, the Greek elections and a worsening debt position in Southern Europe. This has dented confidence and created nervousness around investment, which in turn has impacted job creation. That said, there are some bright spots to be seen – most notably in the South which bucked the trend with a solid growth in permanent placements.
“However, a real worry for me is the acceleration in the pace of decline, which suggests this isn’t a mere blip. If this trend were to continue, there’s a very real chance we could hit a 3 million unemployed figure in the UK in the not too distant future.”
Full reports and historical data from the Report on Jobs are available by subscription. Please contact email@example.com
10 Dec 2013 News
New Zealand Government Hon Maurice Williamson Minister for Land Information 10 December 2013 Media Statement Central Otago ... more
10 Dec 2013 Health
New Zealand Government Trial to reduce blood pressure by ‘zapping’ nerves A new cardiac procedure for people whose blood... more
10 Dec 2013 Business News
Article - BusinessDesk FMA sees big gap between ‘big four’ auditors and the rest By Paul McBeth Dec. 10... more
10 Dec 2013 Business News
Article - BusinessDesk NZ dollar touches fresh 5-year high against Australian dollar ahead of business confidence report By... more
10 Dec 2013 Lifestyle
Dunedin City Council Here’s Your Chance to be a Rock Star! Dunedin (Tuesday, 10 December 2013) – If you’re a... more
9 Dec 2013 Property
Auckland property values continue to surge ahead, up 15.2 per cent in the last year. QV has
10 Dec 2013 Migration
Doing Our Bit Costs, benefits, rugby and refugees Murdoch Stephens – Doing Our Bit (www.doingourbit.co.nz) Amongst all... more
10 Dec 2013 Travel & Tourism
Article - BusinessDesk Air New Zealand expects 1H pre-tax earnings of $166.8 mln, on target to exceed FY earnings By Tina... more
10 Dec 2013 Sport
Massey University Social media a boost for Olympic sports A Massey University researcher has found that social media is helping ... more
10 Dec 2013 Column
Column - Gordon Campbell Gordon Campbell on the latest TPP leaks, and our shabby treatment of asylum seekers by Gordon ... more
9 Dec 2013 People
In less than a year, Lorde has gone from a Year 12 student at Auckland's Takapuna Grammar to a global pop star. The Kiwi's... more
9 Dec 2013 Recruitment
Those in high paid jobs are seeing their wages rise faster than others because of a lack of competition partly due to people leaving... more