Key Points

  • Permanent placements and temp billings both rise at stronger rates
  • Availability of candidates continues to decline sharply
  • Robust demand for staff leads to further marked increases in pay


Staff appointments rise further
November data indicated that permanent staff placements rose at the quickest pace for three months, supported by strong underlying demand for staff. Growth of temp billings also remained marked, and picked up slightly since October.

Demand for staff continues to grow sharply
Staff vacancies rose sharply for both permanent and contract roles in November. However, overall growth of demand for staff weakened slightly due to a softer increase in permanent staff vacancies..

Pay growth remains sharp…
Starting salaries for permanent staff continued to rise sharply on the back of strong demand for staff and skill shortages. Despite easing since October, the rate of inflation remained strong. Temp wages also continued to rise at a marked pace midway through the fourth quarter.

…amid tight candidate availability
Recruitment consultancies reported a further steep drop in permanent candidate availability during November. This was despite the rate of reduction easing to the weakest for seven months. Contract candidate supply meanwhile declined at a slightly quicker rate than seen in October..


Demand for staff rises at slowest rate
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 contract employees during the latest survey period.

Staff availability

Availability of permanent staff
The number of permanent staff vacancies increased across all monitored sectors in November, with Accounting/Financial and IT & Computing coming in first and second place in the rankings. The slowest, but still marked, upturn in permanent staff demand was seen in construction.

Availability of contract staff
Nursing/Medical/Care continued to place at the top of the table for contract staff vacancies during November. Nonetheless, marked increases in demand for contract workers were also recorded for all other monitored sectors..


Permanent salaries
Average starting salaries for permanent job roles continued to increase in November, thereby stretching the current sequence of growth to just over five-and-a-half years. Despite edging down to a four-month low, the rate of inflation remained sharp and comfortably above the series average. Panellists widely commented that salaries had increased due to low candidate availability and strong demand for staff. Steep increases in starting salaries were recorded across all monitored UK regions in November, with the North of England noting the quickest rate of inflation.

Contract pay rates
Hourly pay rates also rose markedly during the latest survey period, despite the pace of inflation edging up only slightly since October’s seven-month low. The Midlands registered the sharpest increase in contract wages, though steep rates of growth were also seen elsewhere.

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.

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.