Key points

  • Permanent placements increase at fastest rate since February
  • Contract billings growth strengthens to seven-month high
  • Sharper falls in the availability of both permanent and short-term staff


Staff appointments rise at faster pace
Permanent staff placements continued to rise in November with the rate of growth quickening to its sharpest since February.  Contract staff appointments also rose at a quicker pace, with the rate of growth reaching a seven-month high.

Demand for staff remains robust
The latest survey pointed to further strong demand for staff with employee vacancies rising at steeper rates for both permanent and contract roles.

Faster decline in candidate availability
The availability of staff for filling job vacancies continued to fall during November.  Latest data pointed to the fastest decline in permanent staff availability for eight months, while contract staff availability also dropped at a quicker rate.

Stronger rates of pay growth
The rate of growth in permanent starting salaries edged up to a six-month high in November.  Short-term pay rates also continued to rise, and at the fastest rate since April.


Staff appointments

Stronger rise in permanent placements
Recruitment consultants signaled a further rise in the number of people placed in permanent roles in November.  Furthermore, the rate of growth accelerated for the second month running to its highest since February.  According to anecdotal evidence, increased confidence and new clients had contributed to greater numbers of permanent placements.  On a regional basis, the North continued to see the strongest increase in permanent placements, while the Midlands also saw marked growth.  The only region to see a decline was Scotland.

Contract billings growth reaches seven-month high
Billings from the employment of contract roles rise for the forty-third successive month in November.  The latest increase was sharp overall, with the rate of growth quickening to its steepest since April.  All regions bar Scotland saw short-term staff billings increase in November.  The most marked rates of expansion were seen in the North and London.



Demand for staff rises at sharpest pace for nine months
Latest data from the Office for National Statistics (ONS) indicated that vacancies rose 2.4% on an annual basis in the three months to October.  Notably, this was the strongest rate of growth seen since the three months to January.

Meanwhile, internet-based recruitment spending continued to fall on an annual basis in Q2 2016.  The -7.2% year on year decline over the second quarter marked the third successive quarterly drop in expenditure.


Staff Availability

Availability of permanent staff
The availability of staff to fill permanent roles continued to decline in November.  Moreover, the latest survey pointed to the fastest reduction in permanent staff availability for eight months.  Permanent candidate availability fell in each of the regions, with the steepest drop signaled in the South.

Availability of contract staff
Contract staff availability also fell at a sharper rate in November, after dropping at the slowest rate for four months in October.  The quickest drop in short-terms staff availability was recorded in the South, closely followed by the Midlands.  In contract, Scotland saw a further rise in temporary staff availability.




Permanent salaries
Average starting salaries for people placed in permanent roles increased again in November.  Furthermore, the rate of inflation edged up to a six-month high.  A combination of skills shortages and strong demand for staff had imparted upward pressure on salaries.  The strongest increase was once again noted in the North, through other monitored regions also reported steep rates of inflation.

Contract pay rates

Contract staff day rates increased further in November.  Furthermore, the rate of growth quickened to a solid pave that was the strongest since August.  Anecdotal evidence indicated that pay inflation was partly down to a shortage of candidates.  The Midlands saw the quickest rise in contract pay, followed by Scotland.  Meanwhile, the slowest increase in hourly pay rates was seen in the South.



About Langley James

Langley James was founded in 1999 by James Toovey, a highly respected recruitment industry professional.  James wanted to provide something unique: a bespoke recruitment service which was founded on service excellence.  With offices in London and Manchester, we are now providing our recruitment services throughout the world and over the last 16 years have worked with some of the most respected companies in the world.

To find out why so many companies turn to Langley James for support in fulfilling their IT and HR recruitment needs, call and speak to one of our specialist consultants today on 0845 124 9555.