The number of people placed in permanent jobs by recruitment consultancies in the South of England increased for the seventh month in a row in February. The rate of expansion recovered from January’s marginal pace, and was broadly in line with the long-run survey average.
Growth of permanent placements rose in all four English regions in February. The North registered the strongest increase, and London the slowest.
Agencies’ billings from the employment of temporary/contract staff fell for the first time in eight months in February. The pace of decline was only marginal, and contrasted with a modest increase across the UK as a whole.
Temporary staff placements increased in three regions in February, the exception being the South. By far the fastest growth was seen in the North.
Phil Cotton, regional chairman for KPMG in the South said: “The solid rise in the number of people finding permanent jobs in the South is hopefully an indication that businesses in the region are remaining upbeat about their prospects for the months ahead and are confident to make long term investments in their workforce.
“It’s also positive that wages have risen again. These enhanced salaries may encourage more people to “trade up” and go for promotion opportunities, and in turn drive some wider momentum within the region’s job market.
“However, while the data shows we’re moving in the right direction, recovery remains shaky. After all, employers will only keep recruiting if they are confident they can afford to take on new staff and this is linked to how they perceive the economy to be fairing.
“Long term, sustainable improvement in the employment market remains dependent on the growth of the economy as a whole. Until this happens we are likely to see a continuation of this scenario, where two steps forward are followed by one step back. In other words, recovery may be on the way, but it is a long path and one negotiated by very small steps.
“The forthcoming Budget will play a crucial role in underpinning, or undermining, business confidence. All eyes are on the Chancellor to see if he can deliver measures to kick start growth.”
Further marginal rise in permanent staff availability
Recruitment consultants in the South of England reported that the availability of candidates to fill permanent job vacancies increased in February, albeit marginally. This contrasted with a slight fall across the UK as a whole.
The South was the only English region to post a rise in permanent staff availability. The steepest drop in availability was registered in the Midlands, and the weakest in the North.
Temporary/contract staff availability increased at a modest rate in February, and the lowest pace in the current seven-month sequence of supply growth. The rate of supply growth was in line with the long-run survey average, and slightly faster than that seen for the UK as a whole in February.
Temp candidate supply also increased in the North in February. No change was registered the Midlands, while a marginal fall was posted in London.
Further solid rise in starting salaries
Average starting salaries awarded to successful candidates placed in permanent positions increased for the eighth month running in February. The rate of inflation eased slightly since January, but remained sharper than the average for 2012.
Survey data again signalled contrasting regional trends with regard to salary growth for new permanent staff in February. The South and North both recorded solid increases, while starting salaries rose only modestly in the Midlands and declined slightly in London.
Continuing the trend shown since April 2012, hourly rates of pay for staff in temporary/contract employment rose in February. The pace of growth slowed, however, to the weakest in six months.
Temp pay rates rose in three English regions, with the strongest gain seen in the North. London registered another decline.
REC director of policy Tom Hadley said: “Competition for candidates intensified this month with private sector employers racing to secure the talent they need for growth from a decreasing pool of skilled workers. Starting salaries have also risen as companies realise they need to make more attractive offers to ensure they can persuade workers to join their workforce and not their rivals.”
