Demand for professional talent up 29%

Nick Elvin

Professional recruitment firms now have 29% more vacancies on their books than this time last year, according to new survey data from the Association of Professional Staffing Companies (APSCo).

This increase in opportunities coincides with the latest research from the Institute of Leadership & Management (ILM), which has announced that 37% of workers are planning to leave their current jobs in 2015 – a dramatic increase from 2014 (19%) and 2013 (13%).

The latest data from APSCo reveals that growth in the professional staffing market continues to climb across all of the trade association’s core sector groups. Permanent vacancies across finance & accounting, IT, engineering and media & marketing are all up year-on-year (16%, 31%, 53% and 15% respectively). This increase is in line with recent figures released by the CBI, which reported that half of British businesses are planning to expand their workforce in 2015.

The significant growth of the engineering sector over the past year can largely be attributed to government initiatives to improve infrastructure – ongoing projects such as HS2 and Crossrail continue to drive an acute need for experienced talent to work in the sector.

Despite a slight slowdown in productivity last month, the latest Purchasing Managers’ Index (PMI) by data firm Markit/CIPS shows growth rates remain well above historical averages in this area, and the falling price of crude oil could further help boost trade and drive opportunities in engineering.

APSCo’s figures also reveal that median salaries across all professional sectors were up by 3% year-on-year. This overall growth is characterised by notable fluctuations in terms of sector, with engineering, for example, recording an uplift of 8%.

However, both the media & marketing and sales arenas have both stalled, reporting slight decreases year-on-year (-0.3% and -1.9% respectively).

Despite the overall positive figures, APSCo is warning that it remains to be seen what impact the general election will have on the professional recruitment market. The latest Deloitte CFO Survey, for example, reveals that the election is of major concern to organisations, perhaps due to the possibility of a hung parliament.

Ann Swain, chief executive of APSCo said: “As we enter 2015, it is clear that the upsurge in vacancies we have recorded throughout the past 12 months is a real indicator of sustained economic stability.

“Despite this optimism, we predict that uncertainty in the run up to this year’s general election, and any associated impact on policy, may have an adverse effect on vacancy levels in early 2015 as organisations put the brakes on hiring to wait for greater stability. Consequently, we will not be surprised if vacancy numbers dip in quarters one and two, however we expect these to recover in a flurry of hiring activity in the early summer months.

“The fact that Deloitte has found that CFOs believe business investment in the UK will rise by 9% this year – higher than other major industrialised nations – indicates real optimism in the future of the UK economy. This positivity is mirrored in the ambition of the many UK professionals who are planning on switching roles in the coming year.”