Recruiters report strong growth in placements

Nick Elvin

Permanent staff placements continued to rise in February, with the rate of growth in appointments the fastest since last October, while temp billings increased at the sharpest pace in five months, according to the latest REC/KPMG Report on Jobs.

The report, which draws on survey data from recruitment consultancies, also showed that the number of vacancies available for people seeking employment continued to rise last month. Overall demand for staff rose at the strongest rate in four months, with figures for both permanent and temporary workers seeing faster increases.

However, the availability of staff to fill job vacancies decreased, with both permanent and temporary candidate supply deteriorated to a greater extent than in the previous month, with the former recording the sharper decline.

Permanent staff starting salaries continued to increase in February, with the rate of growth unchanged from the marked pace seen in January. Temporary/contract staff hourly pay rates also rose further, with the latest increase stronger than seen one month previously.

The study also found that Midlands-based consultancies experienced the fastest growth of placements, while those in London reported the slowest rise. Temp billings also rose at the fastest rate in the Midlands, while the slowest growth was felt by agencies based in the North.

Private sector demand for staff remained substantially stronger than that from the public sector during February. The sharpest increase overall was signalled for private sector permanent employees. Engineering was the most sought-after category for permanent staff, ahead of nursing/medical/care, while the weakest growth in demand was signalled for hotel and catering workers.

Demand rose for all monitored temporary/contract staff categories during February, with nursing/medical/care retaining top spot. The slowest growth was recorded for executive/professional.

Commenting on the report’s findings, Bernard Brown, head of business services at KPMG said: “Recovery in the job market is gaining real traction, and this should help shore up consumer confidence in the run up to the election.

“However, while the job market might be booming, demand for staff is by no means universal across the sectors. The recovery is being heavily driven by hiring activity by UK plc, while the public sector remains in a semi-stasis ahead of further anticipated cuts later in the year.

“The availability of skilled candidates remains a significant concern and businesses are already fiercely competing to secure top talent. This dynamic is driving significant salary growth in pockets of the market, such as the IT and engineering sectors, where the demand/supply mismatch is particularly prevalent.”