Discover key insights into permanent and temporary employment, salary and more in our latest comprehensive analysis, which provides a detailed look at current trends, opportunities and challenges.
Stabilisation amidst uncertainty
Despite ongoing economic uncertainties, the UK labour market shows promising signs of resilience. Jon Holt, Chief Executive of KPMG in the UK, highlights that while the overall demand for staff remains subdued, the pace of decline has slowed, indicating a potential stabilisation. This trend is encouraging as firms begin to regain confidence and make hiring decisions. The low unemployment rate and improved ease of filling vacancies compared to pre-pandemic levels lays a solid foundation for optimism as we move into the latter half of 2024.
Trends in permanent and temporary jobs
The report reveals a continued decline in permanent staff placements, marking the 21st consecutive month of decrease, but talks about how this could improve post-election. Also, the contraction rate has eased, suggesting that the bottom may be near. Conversely, temporary job placements have seen a slight increase.
Increasing pay rates in a competitive market
One of the standout findings is the ongoing rise in pay rates. Permanent salaries have grown at the fastest rate in eight months, driven by the need to attract and retain talent amidst cost-of-living pressures. Temporary wages also continue to rise, albeit at a slower pace than in previous months. This upward trend in compensation reflects a competitive job market where skilled candidates are in high demand.
Candidate availability continues to rise
The availability of staff has been on the rise for 16 consecutive months. This increase, driven by higher redundancies and slower decision-making among employers, has expanded the talent pool significantly. Both permanent and temporary staff availability have grown, providing employers with more options to find the right candidates.
A word about the changing political landscape
Economic and political developments continue to shape the recruitment landscape. The recent general election has introduced a period of uncertainty, causing some employers to delay permanent hiring decisions. However, with the election behind us and potential interest rate cuts on the horizon, there is a renewed sense of optimism. The anticipated economic stability is expected to boost business confidence, leading to more active hiring in the coming months.
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