Report on Jobs – May 2018

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 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 the Recruitment and Employment Confederation.

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

• Weakest upturn in permanent staff appointments in six months
• Supply of labour contracts sharply
• Starting pay for both permanent and short-temp workers rise at accelerated rates

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

• Growth of staff appointments moderates as candidate availability falls further
• Starting salaries and temp wages both rise at historically sharp rates
• Job vacancies continue to increase at robust pace

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

• Steep increases in both permanent placements and temp billings
• Severe staff shortages leads to quickest rise in starting salaries for three years
• Staff vacancies expand at the quickest pace since last November

Tom Hadley, REC Director of Policy says:

“Despite growth in demand for staff this month, we have seen another severe drop in staff availability. Whilst it is encouraging to see a rise in staff appointments for permanent and temporary staff, indicating that employers are feeling confident in making hiring decisions, a lack of candidates remains a major challenge for recruiters – particularly in areas like nursing, engineering, manufacturing and IT. Staff shortages are becoming business critical in many of these key sectors.”

“Because of the lack of candidate availability we are seeing employers paying higher salaries to attract the right people. This is only part of the solution, with employers also having to think about providing a more flexible working environment and progression opportunities. With skills needs and candidate expectations continuing to evolve, employers are having to radically re-imagine their hiring procedures. Government can help by ramping up the UK skills base and ensuring a balanced and evidence-based immigration system.”

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