KEY POINTS FROM SURVEY

NATIONALLY 

Permanent placements fall again at a slower rate.
Pay rates continue to rise markedly.
Worker availability increases to a steeper degree.

THE NORTH

Permanent placements fall, but temp billings return to growth.
Permanent and temp staff supply rises substantially.
The growth of starting salaries and temp wages accelerates further.

FALL IN PERMANENT HIRING THE SOFTEST IN OVER A YEAR

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

“We know our labour market is resilient. The big picture is that unemployment is historically low with the ease of filling vacancies back to pre-pandemic levels. Taken together with today’s data and expected interest rate cuts, inflation easing and increased consumer confidence over the summer, we will hopefully move towards a better economic outlook for the second half of 2024.
“But May’s data underscores the complexities in the current labour market. While demand overall remains weak due to firms still stalling on hiring decisions, the pace of decline has slowed for the third month in a row. Some sectors even saw demand growth - although a lack of skilled applicants could put further upward pressure on pay as employers compete to attract the best talent.
“Business confidence is ready to bounce back. And as well as counting on a more dovish Bank of England, ahead of the General Election CEOs will be closely following all parties’ policy commitments as they consider their plans for future growth.”

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

“The Report on Jobs data for the North from May highlights the complexities in the current labour market, with placements for permanent staff falling again and continued upward pressure on pay amongst competition for candidates with the right skills.
“With expected rate cuts, inflation easing and increased consumer confidence over the summer, we’d hope that the prospect of a better economic outlook for the rest of the year will boost business confidence. Alongside this, business leaders in the North will be watching the General Election closely as they consider their plans for growth.”

Neil Carberry, Chief Executive of the REC, said:

“The Report on Jobs data for the North from May highlights the complexities in the current labour market, with placements for permanent staff falling again and continued upward pressure on pay amongst competition for candidates with the right skills.
“With expected rate cuts, inflation easing and increased consumer confidence over the summer, we’d hope that the prospect of a better economic outlook for the rest of the year will boost business confidence. Alongside this, business leaders in the North will be watching the General Election closely as they consider their plans for growth.”

DEMAND FOR STAFF BY SECTOR

Permanent Staff    

Permanent placements made by UK recruitment consultants fell again in May, extending the downward trend that began in October 2022. That said, the rate of contraction was modest and the softest in over a year, as signaled by the seasonally adjusted Permanent Placements Index reaching a 14-month high in May. Anecdotal evidence from the survey panel pointed to fewer job openings at clients amid a lack of available roles. There was also evidence of delayed hiring decisions. Some panelists continued to report a lack of suitable candidates for available positions.
There was a steep reduction in the number of permanent placements in the South of England. However, a return to marginal growth was seen in the Midlands.
Of the ten broad sectors covered by the survey, just three recorded growth. The strongest increase was seen for Engineering, followed by Blue Collar. The steepest drops in demand for permanent workers were seen for Retail and Secretarial/ Clerical.

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

Temporary/Contract Staff  

The seasonally adjusted Temp Billings Index remained below the crucial 50.0 no-change mark for a seventh successive month in May. However, a rise in the index pointed to a slower and more modest fall in temp billings. Where there was a decline, this was linked by panelists to a mixture of reduced demand and candidate shortages for specific roles.
Two English regions recorded a drop in temp billings (London and the South of England). In contrast, solid growth was seen in the Midlands and the North of England.
Temporary staff demand rose for half of the ten broad sectors in May. The strongest growth was for Engineering followed by Blue Collar. Where vacancies fell, the most prominent decline was again seen for Retail.

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

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills   

Accountancy/Financial:   ACA, ACCA, Accounts Assistants, Auditors, Bookkeepers, Company Secretaries, Credit Controllers, Estimators, Finance Assistants, Financial Accountants, Financial Controllers, Fund Accounting, Insurance, Management Accountants, Part Qualified, Payroll, Taxation and Trusts.

Blue Collar:  Assembly Operatives, C1 Drivers, Cleaners, Drivers, Fabricators, FLT, HGV, HVAC, LGV, Manufacturing Production, Refrigeration, Security Guards, Trades, Vehicle Mechanics, Warehouse and Welders.

Construction:  Architecture Tech. and Assistants, Quantity Surveyors and Refurb Project Managers.

Engineering: Electrical Engineers, Electronic Design, Fire & Security Engineers, Mechanical Engineers, Oil and Gas, Radio-Frequency Engineers, System Engineers, and Technicians.   

Executive/ Professional: Business Development, Commercial Manager, Compliance, Conveyancers, Energy Renewables, HR, Legal, Management, Marketing, Mid-Management, Operations Managers, PR, and Real Estate.

Hotel/Catering:  Chefs, Hospitality and Restaurant Managers.

IT/Computing: Analysts, Data Engineers, Data Professionals, Developers, Digital, Java, Software Architects, Software Engineers, Technical Roles, and Technology.

Nursing/Medical /Care: Carers, Doctors, Nurses, Occupational Therapist, Paramedics, Physiotherapists, Social Care, and Support Workers.

Secretarial/ Clerical:  Administration, Office Support and Sales Administrators.

Other:  Account Directors, Account Managers, Buyers, Commercial, Conference Producers, European Languages, Field Sales, Freight Forwarders, Governance, Insurance Specialists, Logistics, Product Managers, Public Practice, Sales, STEM, Teachers, and Tele sales.

Key Temp Skills    

Accountancy/Financial:  ACA, Accountants, Accounts Assistant, Finance, Financial Accountant, Part Qualified and Payroll.

Blue Collar:  C1 Licence, Coded Welders, Electricians, FLT, HGV, LGV, Machine Operatives, Manufacturing, Mechanics, Plumbers, Rope Access Welder, Security Guards, Spray Painters, VNA Operators and Welders.

Construction:   Architectural Technicians, Joiners, and Quantity Surveyors.   

Engineering: Electrical Engineers, Fire & Security Roles, Installation Engineers, Marine Engineers, Service Engineers, and System Engineers.

Executive/Professional:  Business Analysts, and Management.

Hotels/Catering:  Chefs.

IT/Computing:  Automation Testers, Data Engineers, Data Professionals, Data Scientists, Developers, IT, IT Support, Software, Technical Roles, and Technology.

Nursing/Medical/Care:  Care Home Managers, Dental Nurses, Dentists, Midwife, Nurses, Pediatric Nurses, Social Workers, and Support Workers.  

Secretarial/Clerical:  Administration, Office Staff and Receptionists.

Other: Commercial, ESG, Security Cleared, Sustainability and Teachers.

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

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