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Permanent placements fell at slowest rate for six months, according to Report on Jobs
The REC/KPMG March Report on Jobs published today signals an easing in the pace of labour market deterioration, with employment and pay decreasing at weaker rates.
Although recruitment consultancies continued to register falling volumes of permanent and temporary appointments in March, the rates of decline eased to the weakest in six and five months respectively.
Key points include:
- Slower declines in permanent and temporary appointments.
- Candidate availability continued to rise at a rapid pace
- Further reductions in permanent and temporary staff pay
Lower reductions in employment reflected a moderation in the pace of contraction of demand for staff in March. Permanent staff vacancies fell at the slowest rate since last November, while the latest drop in demand for short-term workers was also the least marked in four months.
The availability of staff to fill vacancies was reported to have improved again in March, in line with widespread redundancies and fewer new job opportunities. Permanent candidate availability rose at the third-fastest rate in the series history, while temporary/contract staff availability increased at a survey record pace.
Permanent staff salaries and temporary/contract staff hourly rates continued to fall in March. Panellists commented that higher candidate availability and stretched client budgets had placed downward pressure on pay. However, the latest declines in permanent and temporary pay were slightly weaker that February's records.
Kevin Green, Chief Executive of the REC, says: “These figures are an improvement on the last six months. They indicate the pace of deterioration in the jobs market is easing and this rings true with what recruitment businesses are seeing on the ground.
"However, we anticipate that we have not yet reached the bottom. With unemployment still set to increase over the coming months, we are calling on the Government to ensure that this month’s Budget is focused on retaining and creating jobs.
"To this end, we are writing to the Chancellor today with our five point plan to jump-start the jobs market.”Mike Stevens, Partner and Head of Business Services at KPMG comments: “While some observers might see small upticks in all these indicators as evidence of green shoots of recovery, the reality is that the availability of permanent and temporary jobs in the UK continues to decline, salaries are being reduced and the pool of available candidates is rising further.
"These latest figures leave no doubt that the UK jobs market is at its worst in the 11 year history of the survey and recovery might take longer and be more protracted than many hope.”
The Report on Jobs provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.
Copies of the report are available on annual subscription from Markit. For subscription details, please contact: economics@markit.com.
