Technical Moves Blog

Jobs Market Review – April 2011

The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs – published this week – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies of which Technical Moves have contributed. The most recent report on Jobs data received during April 2011 is summarised as follows:

Key points:

• Strong and accelerated rise in permanent staff placements.

• Temp billings increased at the slowest rate in four months.

• Permanent salary inflation edged up to nine-month high.

Summary:

Permanent placements increased at faster pace…

Permanent staff appointments rose at a strong and accelerated rate in April, although growth remained below February’s ten-month high. The increase was attributed by panellists to a further marked rise in demand for permanent staff.

…but growth of temp billings eased

The pace of expansion of temporary/contract staff billings eased to the lowest of 2011 so far. There were reports from survey respondents linking the weaker rise in short-term appointments to softer demand from public sector clients.

Pay inflation edged higher

The rate of inflation of permanent staff salaries quickened to the highest for nine months during April, and was slightly above the survey’s long-run average. Temp pay rose at the fastest pace in a year.

Staff availability continued to rise

Recruitment consultants reported a further improvement in the availability of candidates during April. Permanent staff availability increased marginally, while temporary/contract staff availability rose at a solid pace.

Comments:

Kevin Green, Chief Executive of the Recruitment & Employment Confederation, says: “This month’s Report on Jobs shows a clear split developing in the UK labour market. Public sector employment is radically slowing while there is growth in the private sector, confirming that we are now in a two-speed jobs market.

“A number of permanent hires made in IT, construction and engineering suggest that employer confidence on the whole is improving but temporary employment is slowing. This month’s figures for temporary jobs are the worst we’ve seen for four months and is likely to have been caused by employer caution over the impending Agency Workers Regulations. The Government guidance, published last Friday, should act to reassure employers of the ongoing effectiveness of temporary labour and the value of being able to flex their workforces to meet demand.”

Carl Wright, Director – Technical Moves comments:

“April was a difficult month to assess properly with the addtional bank holiday’s having an impact on the availability of decission makers and time taken off by key staff. Alot of recruitment decisions have been put on hold or delayed during April and although some improvement was seen it will probably be until May when we will have a clearly picture of the  improving market within the East Anglia employment sector.

However, the improvement is still not across the board with construction, architecture and housing still remaining subdued while other sectors have started to see real signs of improvement. We hope to see this positive effect spread into other sectors as the year continues and confidence builds and we agree with the REC’s comments on the divide betweeen public sector and private client demand.”