Report on Jobs – March

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:

• Modest growth in permanent placements
• Fastest increase in permanent staff demand for four months
• Labour supply continues to contract sharply

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

• Permanent placements fall for the first time since July 2016
• As temp billings decline for first time since April 2013
• Sustained drop in candidate availability leads to further increases in pay

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

• Permanent placements fall at quickest pace since July 2016
• Vacancies increase at slowest rate since August 2016
• Availability of candidates continues to decline sharply

James Stewart, Vice Chair at KMPG  says:

“Brexit has been sapping business confidence for months, and now it is causing the jobs market to grind to a halt. With unclear trading conditions ahead, many companies have decided to hit the pause button on new hires and reduce their dependency on temporary appointments.

At the same time we are seeing a flight to safety in the candidate market. Applicant availability has fallen sharply, with the majority of people looking to switch-up or develop their careers concluding now isn’t the right time to abandon the haven of an existing job. The consequence of a sluggish jobs market is a drag on the economy – with poor candidate availability impeding business growth and hampering restructuring efforts.

IT recruitment has been slowing for months, but now we’re seeing particularly sharp falls in recruitment activity across financial and professional services. Economic bellwether sectors like retail, construction, hotels and catering are also seeing steep falls in recruitment activity. This along with signs that pay growth is cooling will concern UK economists and investors.”

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

“We have a fantastic labour market that has delivered high employment and flexibility for workers because it helps companies meet their needs easily. It’s a British success story. But Brexit uncertainty has put the brakes on.

With business investment rates poor, and little certainty about the path ahead, today’s data shows that the time for political game-playing is over – this situation is beginning to affect people’s daily lives as permanent staff appointments fell, and the growth of temporary jobs and starting salaries weakened.”

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