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ECONOMICS COMMENTARY
Mar 06, 2015
UK permanent placements growth accelerates to four-month high
Latest data from Markit's survey of recruitment consultancies signalled a pick-up in hiring activity during February. The KPMG/REC Report on Jobs, published today, signalled the sharpest rise in permanent placements since last October. Agencies' temporary staff billings meanwhile increased at the fastest pace in five months.
Employment
The improved growth trend suggests that the labour market remains in good health, allaying concerns of a slowdown following January's softer survey data. The latest available official statistics showed that unemployment fell by a robust 97,000 in the three months to last November, the strongest decline since the three months to last August.
Recruitment activity continues to be underpinned by strong demand for staff among employers. The latest Report on Jobs data showed that overall vacancies increased at the sharpest rate in four months during February, led by sectors such as engineering and healthcare.
Vacancies
However, recruiters again reported difficulty filling these roles amid persistent skill shortages. The availability of both permanent and temporary staff was reported to have fallen at a sharper rate than in January.
Wage pressures
Employers were therefore under pressure to hike starting salaries, with the rate of growth in permanent staff remuneration holding steady on January's strong pace. Temporary staff hourly pay rates also showed a marked increase in the latest month. This bodes well for a continued improvement in average earnings growth across the broader labour force in coming months.
Recruitment survey staff availability
Jack Kennedy | Senior Economist, Markit
Tel: +44 149 146 1087
jack.kennedy@markit.com
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