Permanent Placements on the Rise in July 2013

Permanent Placements on the Rise in July 2013

job market

According to a recent REC (Recruitment & Employment Confederation) and KPMG report, permanent appointments grew at their fastest rate last month since March 2012. This information has been provided by recruitment consultancies across the UK.

The number of candidates placed in roles by recruitment consultancies rose at an accelerated pace in July 2013 with the fastest expansion in the North. Temporary placements also saw their greatest increase in the North of the country.

Kevin Green, REC Chief Executive commented, “The jobs market continues to skyrocket with permanent employment and temporary placements at three and two-year highs, and vacancy growth accelerating to a six-year high. A combination of confidence returning to the UK economy and higher employer demand have contributed to this impressive set of figures.”

Hourly rates for temporary workers increased at their strongest rate since January 2008 and starting salaries reached their highest for 26 months in July, this signals increased competition for candidates.

Kevin also added, “We anticipate starting salaries increasing over the coming months as the economy strengthens and competition to secure talent hots up.” 

Job vacancies may have increased at their strongest rate in six years, however, recruitment consultancies also indicated a decrease in availability of candidates to fill these vacancies. This was apparent for both permanent and temporary staff, with permanent staff declining the most.

Public Sector vs Private Sector

Public sector demand for permanent staff fell in July, meanwhile, public sector demand for temporary staff rose at its fastest pace so far in 2013.

Private sector demand for both temporary and permanent staff strengthened in July with the strongest rate of expansion indicated for Engineering workers, as has been the case throughout the past four months. The slowest vacancy growth was recorded for Blue Collar staff.

Bernard Brown, Partner and Head of Business Services at KPMG, commented:  “With house price and service sector figures moving in an upward direction, indications are that the economy is getting stronger.  Confidence is certainly evident amongst employers; with many conserving cash for a number of years, they are beginning to invest in their people and, as the search for talent is stepped up, the jobs market is looking buoyant again.

If the current trend continues employers will, however, be faced with another conundrum.  For some time staff have sat tight refusing to move when job security was low.  Now the best staff will be looking for better offers so employers will need to strike a balance between recruiting new blood and retaining their best employees.”


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