Key points from July survey:
– July data signals marginal fall in permanent placements
– Contract billings increase at softer pace
– Supply of both permanent and contract labour falls again
Sophie Wingfield, Head of Policy at REC says:
“The rise in interest rates for only the second time in a decade may leave some people feeling the pinch. But a new job is one way people can ease the burden on their finances. With our data showing starting salaries continuing to rise, the latest official government figures suggest that we are finally seeing the effects of a tighter labour market feed through to pay.
Permanent placements decline for first time in ten months
The number of candidates placed into permanent positions in the capital fell at the start of the third quarter for the first time since last September. That said, the rate of decrease was only marginal. The drop contrasted with a further marked expansion across the UK as a whole.
Contract billings increase at sharp rate
Contract billings at London-based recruitment consultancies rose during July, thereby extending the current period of expansion to two years. However, the rate of growth eased from June and was weaker than the average recorded over this sequence.
Fall in candidates seeking permanent positions softens
Recruitment consultancies in London recorded a sixty-second successive monthly fall in the amount of candidates seeking permanent positions in the capital. The rate of deterioration eased further from May’s two-and-a-half year record, but remained sharp nonetheless.
Contract candidate availability falls at slightly faster rate
The amount of candidate’s availability for contract positions in the capital also fell in July, thereby continuing a trend that has been observed since August 2013. The rate of decline accelerated from June and was sharp overall, albeit slightly weaker than that seen across the UK as a whole.
As has been the case since June 2013, salaries awarded to permanent starters in the capital rose at the start of the third quarter. The rate of pay inflation was broadly unchanged from June and solid overall, albeit weaker than that seen at the UK level.
Contract pay rates
Average hourly pay rates for contract staff in London also continued to rise in July. Contrary to the trend for permanent pay, the rate of inflation quickened from June’s 15-month low. Nevertheless, the pace of increase remained weaker than that recorded for the UK as a whole.
Permanent staff appointments continued to rise across the UK during July, albeit at the softest pace since October last year. The sharpest increase was recorded by recruitment consultancies in the Midlands. Meanwhile, London was the only monitored English region to register a reduction. Contract billings rose across the UK in July, thereby continuing a trend that has been observed since May 2013. Moreover, the rate of expansion accelerated from June and was sharper than the long-run series average. The rise was broad-based across all four monitored English regions, with the strongest rate of growth recorded in the North of England.
The number of candidates available for permanent positions in the UK declined in July, continuing a trend that has been observed since May 2013. The rate of reduction remained marked, despite easing from the previous month. The supply of permanent labour fell across each of the four monitored English regions, led by the South of England. In line with the trend for permanent placements, the number of candidates available for contract positions fell during July. A decrease was recorded in each of the four monitored English regions. The sharpest decline was evident in the Midlands, followed by the North of England.
Permanent starters’ salaries across the UK continued to increase in July. The rate of inflation remained marked despite easing to a four-month low. The North of England registered the steepest increase of all four monitored English regions. Meanwhile, temporary wage growth picked up from June, albeit only marginally. The rate of increase quickened in each of the four monitored English regions, except for the South of England.
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 Chester, we are now providing our recruitment services throughout the world and over the last 18 years have worked with some of the most respected companies.
The average time form taking a role…
– and Delivering a Qualified Shortlist of Candidates 3 days
– and First Confirmed Interview 5 days
– and Confirmed Placement 8 days
To find out why so many companies turn to Langley James for support in fulfilling their IT recruitment needs, call and speak to one of our specialist consultants today on 0207 788 6600.
In conjunction with: Markit and sponsored by the Recruitment and Employment Confederation.