Permanent placements increase at slowest pace since last September

The latest Markit/REC Report on Jobs published this week has revealed that April saw the slowest increase in permanent placements for seven months, according to survey data provided by recruitment consultancies. 

In contrast, temp billings increased at a sharp and accelerated pace that was the fastest seen in 2017 so far.

Candidate availability for both permanent and temporary declined at sharper rates in April, with the former posting the quicker pace of reduction. Notably, both categories saw the steepest deteriorations in candidate availability for 16 months.   

Although growth in permanent starting salaries edged down to a four-month low in April, it remained sharp overall and stronger than the series average. Meanwhile, hourly pay rates for short-term staff increased at the sharpest pace in 2017 so far. The month’s data showed an upturn in demand for temporary/contract workers in the UK, with Nursing/Medical/Care continuing to top the table, with Hotels & Catering coming second in the overall rankings.

Meanwhile, Engineering was the most in-demand category for permanent staff in April, closely followed by IT & Computing and Nursing/Medical/Care.

REC Chief Executive Kevin Green said: “Demand for staff is growing within all sectors and all regions of the UK, but there are fewer and fewer people available to fill the vacancies. We have the lowest unemployment rate since 2005, and people already in work are becoming more hesitant about moving jobs amid Brexit uncertainty. Meanwhile, the weakening pound and lack of clarity about future immigration rules is putting off some EU nationals from taking up roles in the UK.

“As a result, candidate availability is at a 16-month low and recruiters are flagging a shortage of suitable applicants for more than 60 different roles from cleaner to accountant. Every shortage has wider implications, for example the exceptional reputation UK engineering enjoys globally is at risk because employers can’t find people with the skills they need.

“One thing is for certain, if British business is to thrive then whichever party forms a government after 8 June needs to address the ever-shrinking pool of suitable candidates by investing in skills and career advice for UK jobseekers, as well as safeguarding access to the workers we need from abroad. It is vital that the future immigration system is agile enough to reflect and adapt to evolving labour market needs.”