2509recThe recent upward trends in both permanent and temporary/contract staff appointments has continued during November according to a new survey. The Report on Jobs, from the REC and KPMG, shows that:

  • Growth of permanent staff appointments strongest since July 2007.
  • Temp billings rose at sharpest rate for 19 months.
  • Permanent salaries increased for first time in 15 months.

Both permanent staff placements and temporary/contract staff billings increased at faster rates in November, with the latest expansions the strongest for 28 and 19 months respectively.

Higher placements and billings were underpinned by a robust and accelerated rise in job vacancies during November. Nursing/Medical/Care was the most in-demand category of permanent staff, while Engineering/Construction employees were the most sought-after temps.

Permanent staff salaries rose for the first time in 15 months in November, albeit only modestly. Hourly rates of pay for temporary/contract continued to fall, but the latest drop was the weakest in the current 14 month period of decline.

Growth of staff availability eased further in November. The number of permanent staff available to fill vacancies increased at the weakest rate for 17 months, while temp availability rose at the slowest pace since July 2008.

Kevin Green, the REC’s Chief Executive, says:  “This is very positive news, November figures show the fastest rise in permanent jobs for 28 months. Employers in nearly all sectors are lifting recruitment freezes and starting to hire again. Flexibility in the UK’s labour market has proved effective in ensuring that unemployment has not reached the levels experienced by some of our international competitors. Whilst UK output has shrunk by 5.9 per cent, employment has declined by only two per cent.

“Despite the positive signs, the Government needs to do more – particularly to help the one million 18 to 24 year olds out of work in the UK. This week’s white paper on jobs must include specific measures aimed at encouraging employers to take on young people. The business community also has a key role to play which is why the REC is this week launching a Youth Employment Task Force chaired by Baroness Prosser and involving a coalition of employers and recruiters who are in the front line of the UK jobs market.”

Bernard Brown, Partner and Head of Business Services at KPMG comments: “Looking at the latest data one might get the impression that the recession is over. Confidence has definitely returned to the private sector and the UK jobs market looks healthier today than at any time in the last two and a half years. However, we are still to see the impact of the government’s anticipated public sector cuts on the jobs market, which will play out over the next 12 to 18 months.”




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