Permanent staff placements in the North of England rose during March, extending the current expansionary sequence to seven months. However, the rate of increase was only modest and the slowest in that sequence. At the UK level, the number of staff placed in permanent positions grew only slightly.
March data indicated a rise in contract staff billings across the North of England, the eighth successive monthly increase registered. That said, the overall rate of expansion was only moderate and eased to a sharply six-month low. Temp billings across the UK rose only slightly, and at the slowest pace since August 2012.
From all four surveyed English regions, only London saw a decline in permanent staff placements, while the fastest increase was seen in the Midlands, followed by the North and the South. Meanwhile, temp appointments contracted in the South, but increased in London and the Midlands.
Demand for permanent staff in the North expanded sharply during March, and at a faster rate than that seen at the national level. Demand for temp/contract workers rose sharply, and the index averaged 61.3 for the first quarter of the year, higher than Q4 2012 (56.8). At the UK level, the pace of growth in demand for temp staff eased to the slowest in six months.
Availability of permanent staff falls for second consecutive month
Recruitment consultants in the North of England indicated that the supply of candidates for permanent positions fell for the second successive month during March. That said, the rate of decline was only slight and eased from February. The availability of candidates for permanent vacancies across the UK as a whole decreased for the fourth month running, albeit slightly.
In contrast to an expansion registered in February, the availability of temporary/contract staff in the North of England declined during March. The rate of contraction was, however, only slight. Conversely, the supply of temporary/contract staff across the UK as a whole increased for the third consecutive month. The overall rate of expansion was moderate and broadly unchanged from February.
Three out of four monitored English regions signalled a fall in the availability of permanent staff, while an increase was registered in the South. Similarly, temporary vacancies fell in London, the Midlands and the North, but expanded in the South.
Sharp rise in permanent salaries
Permanent salaries in the North of England rose during the latest month, as has been the case since March 2012. The rate of wage inflation was sharp and the fastest since December. Across the UK as a whole, average salaries paid to newly appointed permanent staff increased for the eleventh consecutive month. The overall pace of wage inflation was solid and little-changed from last month.
Average hourly pay rates in the North of England rose further in March. Almost 5% of recruitment consultants indicated higher temp rates, while 2% noted a fall. Subsequently, the overall rate of increase was only modest and eased from February. At the UK level, salaries paid to temp workers rose for the second successive month. The rate of wage inflation was moderate, but faster than in February.
Permanent salaries increased in the South and London, but stabilised in the Midlands. Temp/contract pay rates, meanwhile, rose in all four English regions. The sharpest rise was seen in the Midlands, followed by London, the South and the North.
Comments:
Mark Hathway, Managing Director NL Managed Services and REC Regional Director in Yorkshire says:
“The fact that across the North of England in March more people secured jobs than in the previous month is obviously good news.
“Last month for the supply of nurse and healthcare support workers was our busiest month for over three years. Talking to other recruiters in the region who work in a range of sectors including drivers, clerical, healthcare and finance they have all told me they feel very positive about the local jobs market at the moment.
“Although growth in the wider labour market remains slow I feel the outlook for business here is positive at the moment and I’m looking forward to the next few months.”
Jonathan Hurst, Northern Chairman of KPMG, comments:
“The deceleration in permanent staff placements indicates that the wider economic picture is catching up with the Northern jobs market. With temporary placement growth also slowing, there are signs that employers, who were previously comfortable making short-term financial commitments, are now nervous about undertaking people investment.
“However, the growth rate of permanent and temporary staff placements in the North remains above the national average, which demonstrates the resilience of the region’s business community.
“Perhaps, once the measures announced in last month’s Budget start to take effect, we may see a positive impact on business confidence, but there is a long way to go and forecasts for a flat GDP for the rest of the year do not bode well.”
