Report on Jobs – November 2017

The Report on Jobs captures original survey data which provide the most up-to-date monthly picture of recruitment, employment, staff availability and employee earnings trends available. There are two reports, one covering the UK as a whole and one focused specifically on the North of England.

The Report on Jobs is a monthly publication produced by IHS Markit and sponsored by the Recruitment and Employment Confederation.

Here are the key points from the UK Report on Jobs:

• 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

Here are the key points from the North Report on Jobs:

• Recruitment consultancies in the North of England signal steepest increase in permanent starting salaries UK-wide…
• …as businesses’ demand for staff remains robust and labour supply continues to fall
• Permanent placements expand moderately relative to rates seen earlier in 2017

Kevin Green, REC Chief Executive says:

Despite the current uncertainties caused by Brexit and political turmoil, recruiters are placing more people into jobs – particularly in the private sector.

Recruiters also continue to report deteriorating candidate availability and worsening skills shortages. Having less access to candidates can have severe effects, restricting businesses’ ability to grow which means they won’t be able to create jobs or increase pay for staff. Although some hirers are responding by raising starting salaries in an attempt to attract scarce talent, there’s no evidence yet this is leading to pay increases for the wider workforce and those who fail to hire will find themselves in dire straits.

The government must make a New Year’s resolution to ensure that the UK labour market remains successful in 2018. Creating certainty for EU workers that are already here, such as nurses, warehouse staff and chefs, is vital so that employers can plan ahead. The government must agree the transitional arrangements in relation to freedom of movement, which they have said they are potentially going to extend to March 2021. They need to define what kind of access UK employers will have to EU workers post-Brexit, at both the high and low end of the labour market.

In addition, the government needs to think longer term about how to fill vacancies left by EU workers. Turning the Apprenticeship Levy into a broader training levy will help, enabling employers and recruiters to train temporary workers and contractors so they can progress in the jobs market.

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