Key points
• Growth of staff appointments held back by skill shortages
• Contractor billings rise at slowest rate in over two years
• Salary growth remains strong, despite easing to an 18-month low

Slower growth of staff appointments…
Permanent staff placements continued to rise in July, but the rate of growth eased further from April’s recent high to the slowest in over two years. Similarly, contract staff billings increased at the least marked pace in 25 months.

…as candidate shortages bite…
The availability of staff for permanent roles fell further in July, with the rate of decline accelerating to the sharpest since November 2014. Contract staff availability also decreased, although the rate of deterioration eased to the slowest in five months.

…and demand for staff softens
Overall vacancy levels increased at the slowest rate in two years during July. Rates of expansion eased for both permanent and contract staff

Permanent salary inflation eases
Although starting salaries for permanent hires continued to rise in July, the rate of increased moderated further from April’s recent peak to an 18-month low. However, contract staff pay growth quickened to the fastest since April.

Staff appointments
Growth of permanent placements slows further
The number of people placed in permanent continued to increase in July. Although moderating to a 26-month low, the rate of expansion remained solid overall. Shortages of suitable candidates were frequently reported to have constrained appointments. The strongest growth was signalled in the Midlands, whilst the South saw the slowest rise.

Contract billings ease to 25-month low
Contract billings increased further in July. That said, the rate of growth moderated to the slowest since June 2013. As was the case for permanent appointments, the Midlands saw the fastest growth in July, with the slowest increase seen in the South.

Vacancies
Vacancy growth remains strong, despite easing to a two-year low.
Although down to its lowest level in 24 months, the marketing still points to a strong rate of expansion in demand for staff.

Private sector vacancies continued to post the fastest expansion in July, although growth eased since June. Public sector roles increased at an accelerated pace.

Staff Availability
Availability of permanent staff
The availability of candidates to fill permanent roles fell further in July. Moreover, the rate of deterioration was the sharpest in eight months. Permanent staff availability fell across the UK with the steepest drop seen in the Midlands.

Availability of contract staff
The availability of contract staff continued to deteriorate in July. That said, the latest fall was the slowest since February. Mirroring the trend seen for permanent candidates, the Midlands recorded the sharpest decline in contract availability.

IT Skills in Short Supply
Permanent – Developers, Digital Marketing, Gaming, Java, .Net, Programmatics, UX Design
Contract – Java

Remuneration
Permanent salaries
Average starting salaries for people placed in permanent job continued to increase in July. The rate of inflation remained marked, despite easing further from April’s recent peak to the slowest in one-and-a-half years. Candidate shortage has been cited as the main factor pushing up salaries.

Contract pay rates
Daily rates of pay for staff in contract employment continued to rise in July. Moreover, the latest increase in contract pay was the fastest in three month. Contract pay rose across the UK, with the Midlands posting the strongest growth and London the slowest.

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.