Robust demand for staff drives an unprecedented increase in permanent staff appointments.
Availability of workers deteriorates at a record pace...
...leading to a sharper rise in starting pay
Data collected
Summary
The latest
The availability of workers declined at an unprecedented rate, however, driven by faster falls in the supply of both temporary and permanent staff. As a result, rates of starting pay rose rapidly at the end of the second quarter.
The report is compiled by
Permanent placement growth hits record high, temp billings also rise sharply
The steady return to more normal business operations, improved market confidence and greater demand for staff all drove a further marked increase in recruitment activity in June. Permanent staff appointments expanded at the quickest rate since the survey began in
Permanent Placements / Temporary Billings
Permanent Placements / Temporary Billings
50.0 = no-change
Summary
The unprecedented increase in demand for workers
The upturn in demand for workers gathered further momentum in June, with overall vacancies rising to the greatest extent in the near 24-year survey history. Growth of demand for permanent staff hit a fresh series record, while temporary vacancies expanded at the fastest rate since
Candidate availability drops at the quickest rate on record
Improved demand for workers contributed to an unprecedented fall in the availability of candidates in June. Data showed that the supply of both permanent and temporary staff fell at the quickest rates on record. Recruiters noted that increased hiring, Brexit, pandemic-related uncertainty and the furlough scheme all weighed on candidate numbers.
Pay growth continues to accelerate
A sharp rebound in demand for labour and a notable fall in the supply of workers led to further rapid increases in both starting salaries and temp pay. Permanent starters' salaries rose at the sharpest rate since
Regional and Sector Variations
Substantial increases in permanent placements were recorded across all four monitored English regions, with growth led by the
The South of
Data split by sector showed that vacancies expanded at stronger rates across both the private and public sectors. The steepest increase in demand was seen for permanent private sector staff, closely followed by temporary private sector workers. Nonetheless, the growth of demand for staff was also historically strong across the public sector.
IT & Computing led a broad-based expansion of demand for permanent staff during June, ahead of
Blue Collar was the most in-demand category for temp workers in the latest survey period. Nonetheless, all other monitored sectors also recorded marked increases in vacancies. The slowest growth was signalled for Executive/Professional.
Chart 2
Comments
Commenting on the latest survey results,
'June's data confirms that momentum in the jobs market continues to surge, with improved business confidence leading to record high recruitment activity. As we move towards the final easing of pandemic restrictions, permanent role availability increased at the quickest rate since the survey began in 1997 and temporary roles rose to the greatest extent for 23-and-a-half years.
'But for the fourth month running, we're seeing a decline in the availability of candidates to fill all these new roles and the most severe deterioration for 24 years. We need action from businesses and government to reskill and upskill furloughed and prospective workers now more than ever, as the increasing skills gap in the workforce has the potential to slow the
'Recruiters are working flat out to fill roles across our economy. The jobs market is improving at the fastest pace we have ever seen, but it is still an unpredictable time. We can't yet tell how much the ending of furlough and greater candidate confidence will help to meet this rising demand for staff. In some key shortage sectors like hospitality, food, driving, and IT, more support is likely to be needed to avoid slowing the recovery. That means supporting transitions into growing sectors through unemployment support and new skills programmes, as well as making sure the new immigration system reacts to demand, as promised. But it also means that hiring companies need to re-assess their workforce plans. In a tight jobs market, working with professional recruiters to position your firm as an employer of choice is a must.'
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tanya.holden@kpmg.co.uk
Economics Associate Director
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annabel.fiddes@ihsmarkit.com
REC
Comms Manager
T: +44 (0)20 7009 2129
josh.prentice@rec.uk.com
Corporate Communications
Telephone +44 207 260 2234
joanna.vickers@ihsmarkit.com
Methodology
The
Survey responses are collected in the second half of each month and indicate the direction of change compared to the previous month. A diffusion index is calculated for each survey variable. The index is the sum of the percentage of 'higher' responses and half the percentage of 'unchanged' responses. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted.
Underlying survey data are not revised after publication, but seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series.
For further information on the survey methodology, please contact economics@ihsmarkit.com.
Full reports and historical data from the
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