KEY POINTS FROM SURVEY

NATIONALLY 

Higher payroll expenses weighing on recruitment decisions.
Pay growth remains modest in November.
Vacancy numbers fall again in Demand for staff declines to greatest degree in over 4 years.

THE NORTH

Sharpest drop in permanent placements since August last year.
Temp billings down at fastest rate for nearly 4.5 years.
Job vacancies down for both types of workers.

STEEP REDUCTION IN PERMANENT STAFF PLACEMENTS BUT TEMP MARKET DECLINE EASES

Commenting on the latest survey results, Jon Holt, Chief Executive & Senior Partner at KPMG UK, said: 

“Businesses are having to weigh up the prospect of increasing employee costs following the Budget, which has led to an accelerated slowdown in hiring activity across the board. While the data was already heading in that direction, permanent placements saw their steepest reductions in over a year last month, and temporary roles also saw a fifth consecutive decline.
“This slowdown, alongside a growing availability of candidates in the market could put more downward pressure on wage inflation, which remained largely unchanged on last month’s 44-month low. This trend will be encouraging for the Bank’s monetary policy committee ahead of the next meeting later this month, although it may not be enough to counter wider inflationary pressures we are seeing in the economy.
“However, the prospect of further rate cuts through 2025, alongside the Government’s investment plans, both point to improved growth in the near term. This should give businesses greater confidence which may help stabilise the labour market.”

Chris Stott, Office Senior Partner for KMPG in Manchester said:

“We’ve seen permanent hires decline month-on-month this year, but November marked the sharpest drop in placements since August of last year, highlighting the scale of the challenges within the North labour market.
“Businesses across the region that paused hiring practices ahead of the Autumn Budget are clearly still hesitant to renew these practices as they come to terms with the impact that National Insurance rises will have on their cashflows.
“That said, the prospect of interest rates easing next year should provide a stronger basis for firms across the North to enact their growth plans in 2025, with investment in jobs a crucial part of that.”

Neil Carberry, REC Chief Executive, said:

“It should be a surprise to no-one that firms took the time to re-assess their hiring needs in November after a tough Budget for employers. The drop in vacancies was led by private sector permanent roles, and slower permanent recruitment billings across the month also reflected this trend. The real question now is whether businesses will return to the market as they go into next year with greater certainty about the path ahead. The resilience of temporary recruitment offers some hope – private sector temporary hiring activity was almost flat across the country, by comparison with the drop in permanent hiring, and there was growth in some regions. Firms are likely to rest more on temps while they manage the current uncertainty, and that only serves to emphasise again the value of flexible forms of work to companies and people who need to find work quickly after redundancy. For policymakers, ensuring new regulations support rather than weaken our flexible jobs market is vital – especially after the Budget. Ensuring rules introduced by the Employment Rights Bill are tailored to protect agency and temporary work really matters for people.”

Permanent Staff    

Permanent placements fell again in November, in line with the trend that began in October 2022. The contraction was noticeable, accelerating to the steepest since August 2023 amid reports of reduced vacancies and client enquiries. Panelists noted that the late October government Budget had led firms to limit or stop recruitment activity as their reassessed their staffing needs.
Once again, the decline in permanent placements was broad-based. The South of England recorded the steepest drop, followed by the North of England.
Permanent staff vacancies declined across all sub-sectors in November. Rates of contraction were generally faster than in the previous month and led by Executive/ Professional.

Accounting/Financial
Blue Collar
Construction
Hotel/Catering
Engineering
Nursing/Medical/Care
Secretarial/Clerical  
IT/Computing  
Retail
Executive/Professional

Temporary/Contract Staff  

Temp billings declined for a fifth successive month in November, although the contraction was slower than rates seen in September and October. Some panelists reported the non-replacement of temp staff contracts amid reduced requirements. The late October government Budget was again noted as a source of considerable uncertainty in the recruitment market.
Apart from a marked rise in the Midlands, the reduction in temp billings was broad-based and led by the North of England.
Except for Blue Collar and Hotel & Catering, all sub-sectors saw a downturn in temporary staff vacancies during November. Executive/Professional and IT/Computing recorded the steepest contractions.

Blue Collar
Hotel & Catering
Engineering
Secretarial/Clerical
Retail
Construction
Nursing/Medical/Care
Accounting/Financial
IT/Computing
Executive/Professional
 

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills   

Accountancy/Financial:   Auditors, Bookkeepers, Corporate Finance, Credit Controllers, Estimators, Financial Accountants, Financial Services, Insolvency, Management Accountants, Part Qualified, Payroll, Practice, Tax & Audit.
Blue Collar:  Automotive, Drivers, FLT, HGV, LGV Drivers, Manufacturing, Mechanics, and Refrigeration.

Construction:  Architectural Techs, Civil & Structural Engineers, and Quantity Surveyors.

Engineering: Design Engineers, Electrical Engineers, Field Service Engineers, Fire & Security Engineers, Gas Engineers, Maintenance Engineers, Mechanical Engineers Oil & Gas, Technicians, and Vending Engineers.

Executive/ Professional: Advertising, Business Development, Commercial Manager, Communications, Digital Marketing,  Energy & Renewables, HR, Investment Banking, Legal, Marketing, Mid-Senior Management, Operation Managers, PR, Procurement, Recruitment Consultants  and Valuations.

Hotel/Catering:  Chefs, and Hospitality.

IT/Computing: AI Developers, CAD, CNC, Cyber Security, Data Scientists, Developers, Digital, Full Stack Developers, LLM Developers, Platform Engineers, QA Automation, SMT Engineers, Software Architects, Software Developer, Technical Roles, and Technical Sales.

Nursing/Medical /Care: Allied Health Professionals, Carers, Commercial Life Sciences, Consultant Doctors, Dentists, Doctors, Hearing Aid Dispensers,  Nurses, Optometrists, Pediatric Nurses, and Pharmacy Managers.

Secretarial/ Clerical:  Administration, Export Administration, Office Support Staff and Sales Administration.

Other:  Account Managers, Customer Service, Ecologists, European Languages, Events, Logistics, Property Sales, STEM, Sales, Teachers, Team Leaders and Tele sales.

 

Key Temp Skills    

Accountancy/Financial:  Account Clerks, Credit Controllers, and Finance.

Blue Collar:  Cleaners, CNC Millars, Coded Welders, Drivers, Electricians, FLT, HGV LGV, Manufacturing, Operatives, Security Guards, Steel Operators, and Warehouse.

Construction:  Building Surveyors, Civil Engineers, Labourers, Pipefitters, and Quantity Surveyors.  

Engineering: Design Engineers, Electrical Engineers, Fire & Security Engineers, Installation Engineers, Marine Oil & Gas, and Service Engineers.

Executive/Professional:  Human Resources and Recruitment Consultants.

Hotels/Catering:  Chefs, Food Safety Managers, and Hospitality.

IT/Computing:  CNC, Cyber Security, Data Engineers, Developers, Full Stack Developers, Platform Engineers, Python, Technical Roles, and Technology.

Nursing/Medical/Care:  Carers, Midwife, Pediatric Nurses, and Psychiatric Nurses.
 
Secretarial/Clerical:  Administration.

Other: Customer Service, Logistics, Sales, Stock Controllers, Supply Teachers, and Tele sales.

MERRY CHRISTMAS AND A HAPPY NEW YEAR TO YOU ALL!!

KINGSTON RECRUITMENT LTD Call us on – 01482 228891 or simply contact us via email at enquiries@kingstonrecruitment.co.uk 

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