Technical Moves Blog

Jobs Market Review – May 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 May 2011 is summarised as follows:

Key points:

• Weaker increases in both permanent placements and temp billings.

• Growth of overall job vacancies eased to five-month low.

• Slowest rise in permanent staff salaries for three months.

Weaker rises in permanent and temporary staff appointments…

Latest data signalled an easing in growth of staff appointments during May. Permanent placements and temp billings both rose at the weakest rates in seven months.

…as demand for staff increased at slower rate

Growth of job vacancies moderated to a five-month low in May. Weaker rates of expansion were recorded for both permanent and temporary positions.

Pay growth eased

Although permanent staff salaries continued to rise in May, the rate of inflation eased to a three-month low. Temporary staff pay increased at the weakest rate in the current four-month sequence of growth.

Candidate availability rose slightly

Recruitment consultants signalled a modest improvement in the availability of staff to fill job vacancies during May. However, the rates of growth of both permanent and temporary candidate availability eased since the previous month.

Comments:

Kevin Green, Chief Executive of the Recruitment & Employment Confederation, says

“Private sector job creation has not hit the buffers but it is clearly slowing which heightens concerns over whether public sector job losses can be absorbed.

“There have been signs of increasing employer confidence in some sectors but economic growth remains too fragile to spark the real step-change that our jobs market needs.

“The feedback from recruitment professionals confirms a real paradox in the current jobs market, namely, the ongoing challenge of finding suitable candidates in a number of sectors. With the Government’s much discussed ‘Work Programme’ formally getting underway this month, the question now is whether it will be able to deliver the training and guidance necessary to address the current disconnect between employer needs and  available candidates. Looking ahead, the mismatch between vacancies and skills available could hinder future growth.”

Bernard Brown, Partner and Head of Business Services at KPMG comments:

“With businesses and consumers now being hit by higher taxes and fuel costs, public spending cuts and a continuing squeeze on real incomes – this is perhaps no surprise. The hope now is that growth in the UK will pick up later this year, led by a private sector recovery absorbing job losses in the public sector.”

Carl Wright, Director of Technical Moves comments:

“The May figures reported in the latest Jobs Review are disappointing but let’s keep things in perspective. The effect of the additional bank holidays during May was always going to have an impact on recruitment due to the reduced availability of key staff for decision making and with employers taking extra time off”

“Previous figures for this year have shown improvement in the employment sector and it is far too soon to start blaming public sector cuts as the route cause for May’s results. Speaking to our clients within East Anglia we have continued to see a marked improvement in sentiment backed up by a real increase in job registrations. We have experienced an improvement in the local demand for staff in a number of key sectors which often signals good things for other business areas in the future. We remain positive about the local markets resilience and the private sectors ability to continue to make steps towards recovery.”