A recent survey undertaken by Markit on job market trends over the month of August has shown that the South of England is showing the strongest rise in demand of permanent placements since March 1998, coupled with a salary growth that is close to survey record.
The South of England in particular has the strongest growth in permanent positions in comparison to other English regions. Bernard Brown, Partner and Head of Business Services at KPMG said: "Businesses in the South are investing heavily in their workforce, out hiring all other regions in the UK and building their workforce back up to deliver their growth plans. This spending spree is a strong indicator that businesses in our region feel confident about the future and are thus prepared to plough back the profits from their business into their workforce."
With an increase in demand for staff and a rise in wages, the team at Love Success are working very proactively to ensure that we source and provide our Clients with the highly skilled candidates they require in spite of the reported staff shortage.
Jane Atherton and Julia Vassie, Love Success Managing Directors commented saying:"Where August might be expected to be a quiet month, at Love Success, we have experienced significant increases in vacancies taken. This said, the supply of staff is at a record low and applicants applying for jobs are being placed in record time. As a result, we are advising our Clients to be aware of this and make sure they are proactive in their recruitment to ensure they secure the best talent ahead of their competitors."
1. Staff Appointments/ Vacancies:
• Quickest Acceleration in the growth of permanent placements: The number of people placed in permanent roles reported by recruitment agencies in the South of England has been the third strongest rate of growth in survey history, and the strongest rise since January 2014.
• Temp billings growth remains steady: Despite the growth rate of temporary placements slowing, August was the sixteenth successive month that has shown an increase in the number of newly-placed temporary staff.
2. Staff Availability:
• The supply of permanent candidates declines to record low: August results show a decline in supply of permanent candidates for the fourteenth consecutive month, a record since the survey began in 1997.
• Temp Supply falls too: candidates available for temporary work also declined, falling for the twelve consecutive month.
3. Pay Pressures:
• Permanent salaries: Close to survey record, and stronger than the UK average, salary inflation in the south was reported to accelerate further for newly-placed permanent staff.
• Temp/contract pay rates: Temporary pay rose again in August, and has done so consecutively since April 2012.
4. Regional Comparisons:
• Staff Appointments: Permanent placements rose in all four regions in August, with the largest growth in the South of England. The growth of temporary appointments were strongest in the North and the Midlands, and increased across all regions for a sixteenth consecutive month.
• Candidate Availability: The availability of the permanent staff continued to deteriorate in August for a sixteenth successive month, notably in the south where permanent staff supply declined at survey record pace. Temporary candidate availability also declined across all regions.
• Pay Pressures: August indicated a strong increase in permanent and temporary salaries across all regions. Permanent salaries increased quickest in the South, and quickest in the North for temporary wages.
(Source: Markit, Markit Economics Ltd)