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:

• Further decline in permanent placements amid uncertain outlook
• Permanent and temp staff availability deteriorates
• Starting pay inflation remains marked

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

• Slowest rise in permanent staff appointments in 30 months
• Candidate availability declines at softer pace
• Temp wage inflation at 27-month low

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

• Permanent placements unchanged, but temp billings expand at quicker pace
• Availability of staff continues to worsen
• Vacancy growth at near two-and-a-half-year low

James Stewart, Vice Chair at KMPG  says:

“Overall the labour market has been incredibly resilient over the last couple of years as employers have opted to hire more permanent and temporary staff rather than invest in long term productivity gains. However in 2019 Brexit uncertainty is having an opposite and chilling effect on the jobs market, with firms reassessing their level of risk.

With a decision on Brexit now imminent we’re seeing companies freeze or slow the pace of new hires, whilst at the same time the number of people looking to enter the jobs market has declined further. Vacancy growth is now back to the levels we saw around two and a half years ago.

With unemployment at its lowest level since 1975, widespread skills shortages are also cooling the jobs market with the most acute issues to be found in sectors such as IT, engineering, and nursing. This means candidates with the right skills are commanding ever higher premiums and pay growth is now at a 10-year high. This has seen pay outstripping living costs meaning people feel better off.

Once a political decision is made on Brexit we expect a wave of pent-up investment to be released in parallel with a renewed focus on cost reduction. This should result in another busy time for the jobs market later this year.”

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

“The resilience of employers and the British jobs market shines through in today’s Report on Jobs. While numbers are clearly weaker than we have seen over the past few years, the survey suggests businesses are ready to create jobs if the investment environment is right. Recruiters are playing a crucial role in helping their clients fill gaps. As we draw closer to Brexit day, uncertainty and concern has grown, putting the sustainability of positive jobs news at risk. Firms are looking for politicians to find a solution to the current deadlock that gives them the certainty they need to invest and create jobs”

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