- Jo Faragher
The number of permanent jobs available grew at its fastest pace for more than two years in June, according to the Report on Jobs from the REC and KPMG.
Temporary and contract billings also rose at a much sharper pace than in previous months, with June’s increase the strongest in seven months. Overall, demand for staff rose at its strongest rate in three years, said the report. In the private sector, both permanent and temporary vacancies increased at their fastest pace since data were first available in December 2011.
In line with growth in vacancies, salaries are finally showing signs of growth, with permanent staff salaries rising at their fastest pace for almost two years. Temporary and contract rates also increased sharply.
Despite increased confidence from employers in terms of creating job openings, availability of staff for permanent roles dropped during June, although temporary staff availability continued to improve.
Encouragingly, public sector permanent vacancies rose for the first time in six months in June, and temporary roles remained stable. Engineering was the most sought after category for both permanent and temporary or contract roles.
REC chief executive Kevin Green said the UK jobs market was beginning to emerge from the recession “with more people in work than ever before”, but sounded a word of caution.
“Our main concern is that the soaring success of the jobs market and signs of economic recovery could be undermined if the government does not do more to address the growing skills gap,” he said.
“Roles in engineering and IT are in ever increasing demand as recruiters struggle to source the talent that businesses need to succeed. However more roles, such as sales and digital marketing, have been added to this growing list in the last couple of months and show no signs of disappearing.”
Bernard Brown, partner and head of business services at KPMG added: “Perhaps the sun has finally come out to shine on the jobs market and economy at large?
“Employers seem to think so. Many have stepped up their search for staff with demand for staff accelerating to a three year high. Confidence is even beginning to show itself with employers prepared to increase the salaries they offer to new employees.”