- Permanent placements and contracts continue to rise markedly
- Availability of candidates continues to decline sharply
- Starting salaries increase at quickest pace for just over a year-and-a-half
Staff appointments increase at softer pace
Permanent placements continued to rise sharply in June, despite the rate of expansion easing slightly since May’s 25-month peak. Growth in contract billings also softened in June, but remained steep overall.
Demand for staff holds close to May’s 21-month peak
Demand for staff continued to rise in June, with the rate of growth staying close to May’s recent peak. This was despite both permanent and contract vacancies rising at slightly weaker rates than in the previous month.
Salary growth fastest for over a year-and-a-half…
Permanent starting salaries rose at a sharp and accelerated rate that was the fastest in 19 months in June. Growth in daily pay rates also quickened since May, and reached a six month record.
…as candidate availability continues to decline
The pool of available candidates for both permanent and contract roles continued to shrink markedly in June. Whilst the number of permanence candidates fell at a slight softer pace than in May, the supply of contract labour deteriorated at the quickest rate in 18 months.
Growth in permanent placements softens, but remains sharp
There was a further marked upturn in the number of people placed in permanent jobs at the end of the second quarter. This was despite the rate of expansion slowing from May’s 25-month peak.. Robust demand for staff supported the latest increase in permanent placements. However, growth was reportedly dampened by risk aversion linked to Brexit uncertainty and the general election. On a regional basis, Scotland noted the sharpest growth in permanent placements, followed by the Midlands. The weakest rate of expansion was recorded in London.
Further steep increase in contract billings
Growth in contract billings received from the employment of temporary workers in the UK softened slightly in June, but remained sharp overall. Furthermore the latest expansion as the second-fastest in 14 month (after May 2017). Scotland saw the strongest upturn in contract billings. Nonetheless, all of the UK also noted marked rates of expansion.
Demand for staff remains marked
Vacancies rose at steep and identical rates for both permanent and contract roles, despite both job types seeing softer growth than in the previous month.
Private sector staff demand continued to rise sharply at the end of the second quarter. This was despite a slight moderation in demand growth for permanent staff across the private sector. Meanwhile, the number of contract vacancies in the private sector increased at a slightly faster pace. Demand for staff also increased in the public sector in June.
Availability of permanent staff
As has been the case since May 2013, the availability of candidates to fulfill permanent roles declined in June. Although the rate of deterioration softened from May’s 21-month record, it remained sharp overall. The steepest decline was seen in the South of England.
Availability of contract staff
The supply of candidates for short-term roles declined again in June, and at a faster rate than in May. Furthermore, the rate of deterioration was the sharpest in a year-and-a-half. The South of England saw the fastest reduction in contract candidates numbers.
June signaled a sustained rise in permanent starting salaries, thereby stretching the current period of inflation to 62 months. Furthermore, the rate of increase was the sharpest recorded since November 2015. A shortage of candidates and great efforts to secure quality staff was reportedly behind the latest upturn in starting salaries.
Contract pay rates
Rates of pay for workers in short-term employment increased further in June. Notably, the rate of inflation picked up to the most marked in 6 months.
About Langley James
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