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Permanent Placements Rise at Faster Rate in January


The Markit/REC Report on Jobs – published Friday – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.

Permanent placements rise at faster pace

Recruitment consultants reported a slight acceleration in growth of permanent staff placements during January, and to a rate above the survey’s long-run average. However, agencies’ temporary/contract staff billings rose at the slowest pace in four months.

Stronger growth of demand for staff

January data signalled a further increase in vacancies, with the pace of expansion picking up to a five-month high. Demand for permanent staff continued to rise at a faster pace than that signalled for short-term workers.

Candidate availability falls, albeit at slower rate

The availability of staff for both permanent and temporary/contract roles continued to decline in January. Rates of contraction remained marked, despite easing to the slowest for 12 and three months respectively.

Salary growth eases

Starting salaries for successful permanent candidates rose further in January, but the rate of growth eased to a 27-month low. Temporary/contract staff pay rose at the slowest pace since October 2013.

Regional and sector variation

The Midlands posted the fastest rise in placements during January, closely followed by the North. London saw the slowest growth.

All four monitored English regions saw higher short-term staff billings in the latest survey period, with the Midlands posting comfortably the strongest rate of expansion.

Demand for staff remained stronger in the private sector than the public sector during January. The strongest overall increase was signalled for private sector permanent workers. Public sector permanent staff saw only a marginal rise in vacancies, although this was an improvement on the falls seen in the final two months of 2015.

Nursing Medical/Care was the most in-demand category for permanent staff during January. The second-fastest increase was signalled for Executive/Professional workers. Hotel & Catering posted the slowest growth.

Demand rose for seven of the nine monitored types of temporary/contract staff during January. The fastest growth was signalled for Blue Collar workers. Construction and Hotel & Catering saw marginal declines in the latest month.


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