Report on Jobs – February

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

The Report on Jobs is a monthly publication produced by IHS Markit and sponsored by KPMG and REC.

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

• Faster growth in permanent placements and temp billings.
• First increase in permanent staff availability for just over seven years.
• Demand for workers drives rise in permanent starters’ pay.

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

• Permanent placements and temp billings both rise solidly.
• Vacancy trends remain historically weak.
• Uncertainty continues to weigh on staff availability.

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

• A stronger rise in permanent placements, but temp billings fall again.
• Demand for staff strengthens.
• Availability of permanent workers falls at the slowest rate since September 2016.

James Stewart, Vice Chair at KPMG  says:

“The upturn in the UK jobs market remains steady, evidenced by a further rise in the number of people placed into permanent job roles and at the quickest rate in 14 months. “However, looking ahead, the current big unknown is the impact and influence the coronavirus may have on market confidence, let alone the lingering uncertainty around the actual Brexit deal. “Businesses will be hoping that next week’s Budget provides some relief and investment to help get the UK back on the path to growth.”

Neil Carberry, Chief Executive at Recruitment & Employment Confederation says:

“It’s great to see how the state of the jobs market has improved in the past few months. Businesses are feeling positive, placement numbers are up, and the number of vacancies is now rising at the quickest pace for over a year. It shows just how important stability can be. With a little confidence about where the economy is heading, employers can make clear plans for hiring and put them into practice. Politicians must be careful to maintain that stability – whether that’s in negotiations with the EU, or making sure that the tax and skills policies in next week’s Budget work for business. This is even more important given the impact that coronavirus may have on the economy in the spring.

“The stark outlier in this data is the much slower performance of the temporary market. With less than a month to go until the IR35 changes kick in, we’re hearing about more and more companies putting a blanket ban on hiring contractors – and we now see this influencing the availability of flexible workers too. The government urgently needs to stop and think about how to make these changes more effective. They should start by delaying implementation in order to properly regulate umbrella companies.”

For free copies of the full reports, please get in touch or call 0333 023 0077.