Surveys show promising jobs growth

Jo Faragher

Permanent vacancies are on the increase in most sectors, according to figures from the Recruitment and Employment Confederation – backed up by further data analysis from recruitment software company Broadbean.

The Report on Jobs from the REC and KPMG showed that the number of people placed in permanent jobs increased during May, and the rate of expansion reached a six-month high. Broadbean’s data, meanwhile, showed a 2% month-on-month rise in permanent roles for April, with the top three sectors transport and rail, medical and nursing and pharmaceuticals.

Both sources found a rise in temporary billings. There was increased demand for eight out of nine types of temporary/contract staff in May, according to the REC, with construction the only sector where there was a reduction in demand. Broadbean’s figures, meanwhile, found temporary vacancies to have increased by 2.8% in April.  Year on year, temporary roles were up an impressive 17.7%. 

Encouragingly, permanent staff salaries continued to rise in May, the REC found, while temporary and contract hourly pay rates also rose.

Broadbean’s market analysis revealed that there was a 1.3% decrease in applications per vacancy in April, suggesting there is less competition for roles. In terms of availability, however, the REC found that candidates for permanent roles were slightly more scarce in May than in April, while temporary and contract staff availability rose slightly.

The private sector continues to outperform the public sector in terms of jobs growth, according to the REC. Private sector permanent vacancies rose strongly, with the rate of growth accelerating to the fastest since comparable data were available in December 2011. Similarly, private sector temporary vacancies increased at the sharpest pace for six months.

REC chief executive Kevin Green said:
 “This month’s data is a strong indicator that the jobs market, the unsung hero of the UK economy over the last 18 months, is picking up pace. Permanent employment is at a six month high while the use of temps is also growing after last month’s blip.

“The only cloud on the horizon is that the skills mismatch is becoming more pronounced. Employers are struggling to find the skilled candidates they need in sales, marketing and business development to prepare for the upturn in the UK economy, while the majority of the unemployed do not have the skills for the jobs that are available.”