Key points
- Strongest increase in permanent staff appointments in eight months
- Contract billings growth eases to six-month low
- Acceleration of pay growth for permanent and contract staff.
Permanent placements growth accelerates…
The number of people placed in permanent jobs continued to rise in April. Moreover, the rate of expansion quickened to an eight-month high. This reflected a stronger increase in demand for staff, with permanent vacancies rising at the fastest pace since October 2014.
…but contract billings rise at slower rate
Short term billings increased further in April, but the latest rise was the slowest in six months. This corresponded with a moderation in the rate of growth of demand for contract staff to the least marked since January.
Pay growth strengthens…
Growth pf permanent staff salaries accelerated to a nine-month high in April, with our consultants highlighting a combination of strong demand and skills shortages. Daily rates of pay for contract staff meanwhile increased at the fastest pace since July 2007.
…amid tight candidate availability
The availability of staff to full permanent roles deteriorated further in April, with the rate of contraction accelerated to the sharpest in five month. Contract staff availability declined at a marked pace that was similar to that seen in March.
Staff appointments
Permanent placements rise at fastest rate in eight months
The number of people placed in permanent roles increased for the thirty-first consecutive month in April. Moreover, the rate of expansion quickened to the fastest since August 2014. Anecdotal evidence suggested that higher placements were reflective of strong demand for staff at employers. In a reversal of the trend seen in recent months, London saw the sharpest growth of permanent placements during April, while the slowest expansion was seen in the Midlands.
Contract billings growth eases to six-month low
Contract billings rose further in April. Although remaining marked, the rate of expansion moderated to the slowest since October 2014. Where an increase in short term billings was seen, this was attributed to higher client activity levels. The Midlands remained the strongest-performing region for contractors in April, with the slowest growth indicated in the North.
Vacancies
Demand for staff rises at strongest rate in six months
April saw the fastest growth of demand for staff since October 2014. Permanent staff saw demand for their services rise at the strongest rate in six months, whereas contract employees registered the lease marked increase since January.
Private sector demand for staff continued to rise at a stronger pace than that for the public sector workers in April. The fastest rate of growth overall was signalled for private sector permanent employees.
Staff Availability
Availability of permanent staff
The availability of candidates to fill permanent job vacancies continued to deteriorate in April. The latest fall was the sharpest since last November. The Midlands registered the steepest reduction in permanent candidate availability.
Availability of contract staff
The rate of decline in contract staff availability remained marked in April. Skill shortages were evident for a range of occupations.
Remuneration
Permanent salaries
Average starting salaries for people placed in permanent jobs continued to rise in April. The rate of growth was strong, having accelerated to the sharpest since July 2014. A combination of strong demand for staff and shortages of skilled candidates was cited as the driver of salary inflation. The South led a broad-based upturn in permanent salaries during April.
Contract pay rates
Daily pay rates increased further in April. Although less marked than the rise in permanent salaries, inflation was nonetheless strong and the fastest since July 2007. The sharpest contract pay growth was reported in the Midlands.
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.
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