The latest report on jobs produced by ISH Markit/REC contains some very positive news for the employment market and job seekers overall. In terms of the outstanding highlights, we have seen
- Permanent recruitment growth reaching a 27 month high
- Temporary employment at a 30 month high
- Growth at the fastest pace in 2017
After the slight decline in permanent recruitment at the end of 2016 and early 2017, there is now a sharp increase in the number of permanent placements with July demonstrating a 27 month high. This growth has been demonstrated across all sectors with the Engineering and Technical sector demonstrating the strongest growth across the UK.
Interestingly enough the strongest areas of growth have been in the Midlands and North of the UK with London and the South East still showing job growth, but not as fast as other areas. This reflects the fact that the strongest growing sectors are in the technical field rather than the financial/IT areas which are primarily based in the South East.
The adverse effect of this continual growth in recruitment by companies is evidenced by pay inflation. This has continued to increase in July and it is highlighted by the fact that employers, particularly in the technical fields are offering higher salaries in order to secure skilled candidates. Overall pay inflation is at a 20 month high.
There has also been a marked reduction in the availability of in candidates seeking new roles. As such it is vital for organisations to have an efficient recruitment process, with decisions made quickly, while continually conducting benchmarking exercises to ensure that their salaries remain competitive.
Kevin Green the CEO of the Recruitment and Employment Confederation states: “The job market continues to confound expectations with both permanent and temporary placements growing at the fastest rate for over two years. Starting salaries are still rising, so for workers who want to boost their earnings now is a good time to consider moving job”.
It is clear that employers are having to work even harder to fill jobs as vacancies rise and candidate availability shrinks. UK employment remains at an all-time high and looks set to keep improving.
Author: Liam O’Connell