Report on Jobs – December

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:

• Further marked increase in permanent starters’ pay.
• Slowest fall in permanent labour supply since April 2017.
• Stronger demand for both permanent and temp workers.

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

• Softer fall in permanent staff appointments, while temp billings return to growth.
• Vacancy trends remain historically weak.
• Uncertainty continues to weigh on staff availability.

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

• Permanent placements rise for the first time in a year.
• Vacancy growth remains near-decade low.
• Staff availability continues to fall sharply.

James Stewart, Vice Chair at KPMG  says:

“It would appear that following the clarity of the election outcome, the jobs market finally began to show signs of life with permanent placements rising for the first time in a year.”

“However, growth was modest and coming off a historically low base, so UK business will be hoping for quick government action to get the UK back on the path to growth including investment in upskilling the workforce. Lingering uncertainty around the Brexit deal to be secured will continue to weigh on employers’ decision making around hiring and investment over the coming months, as well as job-seekers desires to seek new opportunities.”

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

“After the uncertainty of 2019, there are some signs of a clearer outlook for hiring in today’s survey. With a new government in place and the path ahead looking more predictable, some businesses have decided that they have waited long enough. The first increase in permanent placements for a year should give encouragement to both recruiters and employers – let’s hope this is a sign of positive things to come.

“Feedback from recruiters shows that the upcoming IR35 changes are affecting both placements and the availability of flexible workers. This is a delicate period for the jobs market and is the worst time to push through sweeping changes to the way we tax contractors. It is right that government engages further with business on the changes, but they should also delay implementation until next year to allow time for a full, independent review and effective regulation of the umbrella sector. As it stands, the government risks damaging ethical businesses and encouraging non-compliance.”

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