KEY POINTS FROM SURVEY

NATIONALLY 

A steeper fall in permanent placements signalled.
Permanent pay growth weakest in five months.
Candidate availability continues to climb.

THE NORTH

Permanent placements nearly stagnate.
Increase in Labour demand and supply retreat.
Pay pressure cools further in august.

SALARY PRESSURE CONTINUES TO EASE IN AUGUST

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

“While lower inflation has brought welcome stability to some sectors, and despite a first rate cut in August, monetary policy continues to be restrictive, which means that overall business confidence continues to fluctuate.
“Recent Government warnings that the UK’s economy may weaken further before improving add to the overall sense of uncertainty, affecting recruitment plans. Firms holding back from hiring led to a sharp contraction in the number of people placed into permanent roles in August amid continued decline in demand, extending the downturn in the UK’s labour market.
“The news that while salaries rose last month it was at the weakest rate since March could help make the case for more rate cuts when the Monetary Policy Committee meets to decide the future path of interest rates.
“Both employers and job seekers are still facing a challenging period that will require careful long-term planning and adaptability.”

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

“While summer months can see a pause in some hiring, the employment market in the North of England continued to mirror the UK-wide pattern in August of permanent hiring slowing, but the region did see temporary hiring increase. The North did however see only a slight decline in permanent staff appointments, faring better than other UK regions. While only the Midlands saw a greater rise in temporary postings during August. As the holiday season ends and the country begins to look towards the Budget, hopefully September creates further business confidence and employment opportunities in the North of England.”

Neil Carberry, REC Chief Executive, said:

“August is always a difficult market to judge because of the summer break, but this month’s survey supports what we have been hearing around the country – employers are still cautious. They are waiting for a clear signal that sustained demand is around the corner. The new government said growth was its main priority – but it needs to deliver now. A vision for a positive, prosperous Britain must accompany the fiscal realism that is being served up right now. That is the test for the Chancellor and Prime Minister this autumn.”
“It’s clear that there is underlying momentum in our jobs market, with temp hiring and private sector vacancies essentially flat. Some regions are seeing stronger performance too – notably the North of England. Pay growth has returned to a more normal level, which should reassure the Bank that the positive signal of beginning to cut interest rates was the right call. Firms will welcome this – but they are concerned by the potential challenges of the government’s labour market agenda. Big changes are possible – but moving too fast and breaking things may damage business investment and opportunities for workers. That is why we are encouraging the government to work with business to design changes that employers can work within, and to reassure them that they aren’t taking risks by hiring now. More than anything, as our new ‘Voice of the worker’ campaign shows, people want to work in a myriad of different ways now – any legal changes must support that, rather than prescribing what approved work is from Whitehall.”

DEMAND FOR STAFF BY SECTOR

Permanent Staff    

Permanent staff appointments continued to fall in August, in line with a trend that stretches back to October 2022. Moreover, the rate of contraction accelerated, reaching its steepest since March. Panelists reported reduced demand, some uncertainty in the economic outlook and a lack of vacancies as reasons for the latest decline.
The steepest fall in placements was seen in the South of England. In contrast, there was little change recorded in the North of England.
Once again, half of the sectors covered by the survey registered a decline in permanent vacancies. The steepest drop was for IT & Computing. Conversely, of those categories that experienced growth, the fastest increase was seen for Nursing & Medical Care.
Nursing/Medical/Care
Engineering
Blue Collar
Accounting/Financial
Hotel/Catering
Secretarial/Clerical  
Executive/Professional
Retail
Construction
IT/Computing 

Temporary/Contract Staff  

For the second successive month, there was a marginal decline in temp billings signalled by the survey data. A lack of demand for temp workers was cited by some recruitment consultants, with clients reportedly cutting costs or not renewing contracts.
Whereas there was growth in temp billings in the Midlands and North of England, declines were seen in London and the South of England.
Temp vacancies declined across seven sectors in August, with the steepest reduction seen for Executive & Professional. IT & computing also recorded a noticeable fall. The strongest growth was for Blue Collar.
Blue Collar
Hotel & Catering
Nursing/Medical/Care
Secretarial/Clerical
Construction
Engineering
Retail
Accounting/Financial
IT/Computing
Executive/Professional

 

SKILLS IN SHORT SUPPLY

Key Permanent Staff Skills   

Accountancy/Financial:   Accounts Assistant, Accounts Payable, Auditors, Bookkeepers, Compliance, Corporate Finance, Credit Controllers, Estimators, Financial Accountants, Insurance, Management Accountants, Part Qualified, Payroll, Risk, Tax & Audit, Taxation and Treasury.

Blue Collar:  Coil Winders, Drivers, Electricians, FLT, HGV Mechanics, HVAC, and LGV Drivers.

Construction:  Architectural Techs, Construction Professionals, Quantity Surveyors and Skilled Trades.

Engineering: Civil Engineers, Energy Process, Engineers M & E, Field Service Engineers, Fire & Security Engineers, Gas Engineers, HVAC Engineers, Industrial Engineers, Mechanical Engineers, Senior Electronic Engineers, Structural Engineers, Technicians, Validation Engineers, and Vending Engineers.

Executive/ Professional: Business Development, Commercial Manager, Compliance, Conveyancers, Energy & Renewables, HR, Legal,Legal Secretarial, Management, Marketing, Mid-Senior Management, PR, Procurement, Project Managers, Real Estate, Recruitment Consultants and Valuations.

Hotel/Catering:  Chefs, and Hospitality.

IT/Computing: Automation Testers, CAD, Creative Design, Cyber Security, Data Architect, Data Engineers, Data Scientists, Developers, Full Stack Developers, IT, Senior IT Engineers, Software Engineers, Technical Roles, and Technical Sales.

Nursing/Medical /Care: Carers, Consultant Doctors, Dentists, Doctors, Hearing Aid Dispensers, Nurses, Occupational Therapist, Optometrists, Paramedics, Pharmacy Managers, Physiotherapists, Social Workers, and Support Workers.

Secretarial/ Clerical:  Administration, Junior Administration, Office Support Staff, Receptionists, and Secretaries.

Other:  Account Managers, Buyers, Customer Service, European Languages, Field Sales, Health & Safety, Immigration Specialists, Import/Export Clerks, Life Sciences, Logistics, Multilingual Customer Service/Sales, Sales Managers, STEM, Supply Chain, and Teachers

Key Temp Skills    

Accountancy/Financial:  ACCA, Accountants, Accounts Assistants, Auditors, Bookkeepers, CIMA, Credit Controllers, Debt Recovery, Finance, Finance Accountants, Financial Services, Management Accountants, Part Qualified, Payroll, Risk, and Tax Accountant.

Blue Collar:  Carpenters, CNC Miller, Coded Welders, Drivers, FLT, HGV Mechanics, Plater, Steel Operatives, Warehouse and Welders.

Construction:  Architectural Techs, Quantity Surveyors, and Skilled Trades.   

Engineering: Civil and Design Engineers, Electrical Engineers, Installation Engineers, Manufacturing Engineers, Mechanical Engineers, Plant Maintenance, Structural Engineers, and Technicians.

Executive/Professional:  Human Resources and Marketing.

Hotels/Catering:  Chefs and Hospitality.

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

Nursing/Medical/Care:  Carers, Dentists, Hearing Aid Dispensers, Midwife, Nurses, Optometrists, Pediatric Nurses, Pharmacists, Physio’s, Psychologists, Social Workers, and Support Workers.  

Secretarial/Clerical:  Administration, HR Administration, Receptionists and Transport Administrators.

Other: Customer Service. Logistics 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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