Current News
10 Mar 2008
Latest Report on Jobs shows drop in perm placements but big rise in temp demand
The latest REC/KPMG Report on Jobs signalled a drop in permanent staff appointments for the first time since May 2003. The decline in placements reflected a further slowing in growth of demand for staff and continued shortages of skilled candidates. A contrasting trend was signalled for temporary/contract staff billings, which rose at the fastest pace for three months. Meanwhile, inflation of wages and salaries continued to ease.
Commenting on this month’s data, Helen Reynolds, Acting Chief Executive Officer, Recruitment and Employment Confederation (REC) comments:
“The increase in demand for temporary workers once again highlights the crucial support that agency staff provide for UK employers and the opportunities that this form of flexible work provides for the workers themselves. As a result, it is crucial to ensure that proposed new regulations on agency work – such as those included in the recent Private Members Bill – do not have a negative impact on the UK’s temp model.
“Although the demand for permanent placements was down, it is important to note that there is still extremely strong demand in specific areas such as social care and construction. Within this context, it is essential that the Government’s new points-based immigration system reflects the needs of employers in these sectors. ”
Responding to the latest labour market trends highlighted in the report, Alan Nolan, Director at KPMG comments:
“The credit crunch and the discussions around recession have taken their toll on the labour market during February with the first fall in permanent staff placements since 2003. Unsurprisingly perhaps, in contrast the number of temporary appointments has grown at the fastest pace in three months, suggesting that employers are dealing with the uncertainty in the economy by moving towards a more flexible labour force. The good news is that although pay is still on the increase, the rate of growth has substantially slowed down. This will be a welcome message for the Monetary Policy Committee who were worried that higher food and energy prices will push up wage demands.”
The Report on Jobs is published by the REC and KPMG in association with NTC Research. The report provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers. For information on subscribing to Report on Jobs contact info@ntceconomics.com
