Permanent placements rocket up at their fastest rate for seven months while pay also increases

 
Hayley Kirton
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Nearly two in five (38 per cent) recruiters said they had placed more permanent staff last month (Source: Getty)

Permanent job placements rose at their fastest rate for seven months in November, while pay also increased.

According to a survey out today by the Recruitment and Employment Confederation (REC) and KPMG, 38 per cent of recruiters said they had placed more permanent staff during November than they did the month before, compared to 27 per cent who reported a decline in placements.

Meanwhile, 25 per cent of those surveyed reported that permanent staff were on average being awarded higher salaries in November compared to October.

For those placing temporary staff, 39 per cent said they had received a higher level of billings for finding people short-term roles compared to the month before, compared to 24 per cent noticing a reduction, while 19 per cent said they had noticed an increase in the pay temporary workers were being offered in November compared to October.

“Businesses are confident, with more people finding permanent jobs each month and pay increasing – this is a great way to cap a bumper year for the UK labour market,” said Kevin Green, chief executive of REC.

However, the study also raised concerns about skills shortages, with 44 per cent of recruiters reporting that the availability of staff for permanent vacancies was worse than a month ago, which is the highest proportion reporting this problem since August.

Those searching for temporary workers also ran into issues, with 41 per cent saying the availability of staff for these roles was worse than a month ago.

“In some sectors, skill shortages could make this a sad Christmas,” said Green. “For example, more than two thirds of recruiters that supply drivers said that a shortage of candidates will cause chaos for shops and delayed deliveries for shoppers. As we look ahead to 2016 the data suggests that the public sector is starting to cut its recruitment activity as austerity bites, while the private sector is still hunting for skills and talent.”

Bernard Brown, partner at KPMG, added: “November saw a further tightening of labour market conditions, with few sectors remaining immune from the effects of ongoing skills shortages.”

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