Permanent vacancies on the up, says Report on Jobs

Jo Faragher

Job vacancies increased at the sharpest rate since April 2011 in January, according to the REC/KPMG Report on Jobs – with growth in permanent roles showing particular promise.

Recruiters enjoyed a rise in permanent staff placements for the fourth consecutive month, while over the same period, temporary billings rose for the sixth month running. The rate of growth in permanent vacancies reached a 21-month high, although growth in temporary vacancies was marginally slower than in December 2012.

Salary growth picked up for permanent roles, the report found, potentially down to some decline in availability of permanent staff. Pay for temporary staff fell slightly for the first time in five months, while the availability of short-term staff rose moderately.

Growth was fastest in the North for both permanent and temporary placements. And while private sector demand for permanent staff reached a 10-month high, demand for both permanent and temporary staff fell in the public sector in January.

Tom Hadley, the REC’s director of policy and professional services, said: “The war for talent has begun. January saw the sharpest rise in starting salaries in well over a year after a nine-month trend of increases…This is good news for workers but also highlights the need to address the current ‘skills disconnect’ which presents a major barrier to growth in key sectors of our economy.”

Bernard Brown, partner and head of business services at KPMG, said: “Demand for staff is at its highest peak for almost two years meaning that employees who may have been too nervous to change jobs in recent months, might consider the benefits of a fresh challenge.”