Langley James IT Recruitment Market Review –November :UK

Key Points

  • Permanent placements increase at slowest pace in 18 months
  • Faster rise in contract billings
  • Strong salary growth amid falling candidate availability

Growth of permanent placements eases to 18-month low…

The number of people placed in permanent jobs by surveyed recruitment consultancies continued to rise in November. However, the rate of growth moderated further, reaching its slowest for one-and-a-half years.

…but contract billings rise at faster rate

Agency billings from the employment of temporary and contract staff increased again in November, with the rate of expansion quickening from that recorded in the previous survey period.

Strong salary growth

Starting salaries for successful candidates placed in permanent jobs rose further, with the rate of growth quickening from October’s eight-month low and comfortably above the survey’s long-run trend. Contract pay growth remained solid and slightly faster than in the previous month.

Further marked drop in staff availability

The rate of decline in permanent candidate availability remained marked in November, with a range of skills reported in short-supply. Contract staff availability also fell, albeit at the slowest rate since March.

Permanent IT staff skills in short supply – Business Intelligence, Java, .Net, SQL, PHP, Programmers, Project Managers

IT Contractor staff skills in short supply – Business Intelligence, Developers, Java, Linux, .Net, SQL

Staff Appointments
Permanent placements rise at slowest rate in 18 months

November data pointed to a further expansion in the number of staff placed in permanent jobs by recruitment consultants. However, the rate of growth eased to the least marked for one-and-a-half years. Those panellists reporting higher placements cited rising demand for staff and increased client activity levels. However, other respondents commented on shortages of skilled candidates and slower client decision-making.

Contract billings rise at stronger rate

Billings received by agencies from the employment of temporary and contract staff continued to increase in November. The rate of growth accelerated from the previous month, although remained slower than that recorded between June and September.

Vacancies
Demand for staff rises at slowest rate in 13 months

Slipping to 64.2 in November, from 65.7 in October, the Report on Jobs Vacancy Index signalled a moderation in the rate of expansion of demand for staff to the least marked for over a year. Weaker growth of demand was recorded for both permanent and temporary employees during the latest survey period.

Demand for staff by sector
Permanent staff – Demand for IT staff increased to position 2 in September, with Engineering taking top spot.

Contract staff – Demand for IT contractors rose from position 8 to 4.


Staff Availability
Availability of Permanent Staff
The availability of candidates to fill permanent job vacancies fell further in November. The rate of decline was little-changed from the substantial pace recorded in September and October. Lower candidate availability was signalled by around 44% of panellists, versus 8% that reported an improvement.

Availability of Contract Staff
Temporary/contract staff availability fell at the slowest pace in eight months during November, with the rate of decline easing noticeably since October.

Remuneration
Permanent Salaries
Average starting salaries for people placed in permanent jobs continued to rise in November. The rate of growth quickened from October’s eight-month low and was stronger than the survey’s long-run average. Panellists attributed higher salaries to stronger demand for staff and competition between employers for quality candidates.

Contracts Pay Rates
Hourly rates of pay for staff in temporary/contract roles increased further in November. The rate of growth quickened slightly since October and was solid overall

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 15 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 recruitment needs, call and speak to one of our specialist consultants today on 0845 124 9555.