KPMG/REC Report Jul 2011
Upcoming SlideShare
Loading in...5
×
 

KPMG/REC Report Jul 2011

on

  • 264 views

REC/KPMG Report on Jobs for July. ...

REC/KPMG Report on Jobs for July.
Key highlights reported:
Modest rise seen in placements against perm and temp against June\'s numbers (note: June showed a 22 month low)
Demand for staff growing at the slowest pace in 8 months
Pay growth was better than June\'s numbers

Statistics

Views

Total Views
264
Views on SlideShare
264
Embed Views
0

Actions

Likes
0
Downloads
0
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

KPMG/REC Report Jul 2011 KPMG/REC Report Jul 2011 Document Transcript

  • UK labour market 3rd August 2011 The most up-to-date source of monthly UK labour market data and analysis Report on Jobs Staff appointments increase at moderate pace in July Staff Appointments via Recruitment Consultancies 50 = no change on previous monthThe Report on Jobs is a monthly 75 Increasing rate of growthpublication produced by Markit and 70 Temp/Contract Billingssponsored by the Recruitment andEmployment Confederation and KPMG 65LLP. 60The report features original survey 55data which provide the most up-to-date monthly picture of recruitment, 50employment, staff availability andemployee earnings trends available. 45 40 Permanent Placements1 Executive summary 352 Appointments 30 Increasing rate of decline3 Vacancies 25 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20114 Sectoral demand5 Staff availability Key points from July survey:6 Pay pressures  Modest rises in permanent placements and temporary billings7 Special feature  Demand for staff grows at slowest pace in eight months  Pay growth quickens from June’s low but remains muted  Faster improvement in candidate availabilityMarkit Economics Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG said:Henley on ThamesOxon RG9 1EL, UK “Permanent and temporary staff appointments have risen again in July, although at a very moderate pace.Tel: +44 1491 461000 “The good news is that we are seeing no further deterioration in the jobs market but growth isFax: +44 1491 461001 still much slower than at the beginning of the year.email: economics@markit.com “Employers across all sectors remain cautious about hiring new staff. The key reason for thisCopies of the report are available is the uncertain economic outlook with domestic demand being weighed down by governmenton annual subscription from cutbacks and falling real wages, while exports and investment are not strong enough to takeMarkit. For subscription details up the slack.”please contact:economics@markit.com
  • Report on Jobs | Recruitment Industry Survey1 Executive summaryThe Report on Jobs is unique in providing the mostcomprehensive guide to the UK labour market, Staff Appointmentsdrawing on original survey data provided by 50 = no change on previous month 50=no change on previous month 70 70recruitment consultancies and employers to provide Temp/Contract Billingsthe first indication each month of labour market 65 65trends. 60 60 55 55The main findings for July are: 50 50 45 45Modest rise in staff appointments 40 Permanent Placements 40Recruitment consultants reported further increases in the 35 35number of people placed into both permanent and temporaryjob roles during July. Rates of growth quickened slightly from 30 30June’s lows but remained below long-run trends. 25 25 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Slower growth of vacanciesDemand for staff continued to rise in July, but the rate ofexpansion eased further to the slowest for eight months. The Demand for staffmost sought-after workers were those in the engineering & 50 = no change on previous monthconstruction and IT sectors, while the weakest demand trends 75 Increasing rate of growthwere signalled for employees in the hospitality and healthcare 70categories. Temp/Contract Vacancies 65Pay inflation picked up but still 60 55subdued 50Growth of both permanent salaries and temp hourly rates 45quickened in July, but remained below their respective Permanent Vacancies 40averages since the start of the survey in October 1997. 35Faster rise in candidate availability 30 Increasing rate of decline 25Higher levels of staff availability were reported in July. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Permanent candidate supply improved at the sharpest ratefor 18 months, while the latest rise in temp availability was thestrongest since February. Staff Availability and Earnings Growth 50 = no change on previous month 50 = no change on previous month (inverted) 70 Skill shortages (Availability of staff 30 65 inverted - RHS) 40 60 50 55 60 50 45 70 Average permanent salaries (LHS) 80 40 35 90 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011All Intellectual Property Rights owned by Markit Economics Limited
  • Report on Jobs | Recruitment Industry Survey2 Staff appointmentsRecruitment consultancies report on the number of Staff Appointments via Recruitment Consultanciespeople placed in permanent jobs each month, and 50 = no change on previous monththeir revenues (billings) received from placing people 75 Increasing rate of growthin temporary or contract positions at employers. 70 Temp/Contract Billings 65July survey results indicated that growth of staff appointmentswas maintained, albeit at a subdued pace. Both permanent 60placements and temp billings increased at slightly faster rates 55compared with lows recorded in June. 50Permanent placements rose at 45modest pace... 40 Permanent PlacementsThe number of people placed in permanent jobs by recruitmentconsultants increased further in July, bringing the current 35period of continuous growth to two years. However, the rate 30of expansion remained modest and was only slightly faster Increasing rate of declinethan June’s 22-month low. Where a rise in placements was 25recorded, this was generally attributed to increased demand 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011for staff and higher client activity levels. Those panellists thatnoted a decline in placements commented on uncertaintyamong employers and associated delays in hiring decisions. Permanent Staff Placements...while temp billings also increased Q. Please compare the number of staff placed in permanentAgencies’ billings from the employment of temporary/contract positions with the number one month ago.staff continued to rise at a moderate pace in July, althoughgrowth remained well below the strong rates seen at the start of Higher Same Lower Net Index S.Adj. the year. Survey respondents attributed higher short-term staff % % % +/- 50 = no chg Indexappointments to a further rise in temp vacancies at employers. 2011 Feb 42.4 35.0 22.7 19.7 59.9 62.7However, there were reports of budget constraints at a number Mar 46.5 32.6 20.9 25.6 62.8 59.7of clients, particularly those in the public sector. Apr 41.6 37.5 20.9 20.6 60.3 60.6 May 39.3 31.8 28.9 10.4 55.2 55.1An index reading above 50 signals a higher number of Jun 33.9 39.7 26.4 7.5 53.7 52.2placements/billings than the previous month. Readings below Jul 36.5 33.9 29.6 6.9 53.5 52.450 signal a decline compared with the previous month. Temporary/Contract Staff Billings Q. Please compare your billings received from the employment of temporary and contract staff with the situation one month ago. Higher Same Lower Net Index S.Adj. % % % +/- 50 = no chg Index 2011 Feb 40.8 42.7 16.5 24.3 62.1 61.5 Mar 42.5 42.9 14.6 27.9 63.9 58.8 Apr 36.5 41.0 22.5 14.0 57.0 56.6 May 30.4 39.6 30.0 0.4 50.2 52.4 Jun 32.6 46.3 21.1 11.4 55.7 52.1 Jul 33.8 44.0 22.2 11.6 55.8 52.6
  • Report on Jobs | Recruitment Industry Survey3 VacanciesRecruitment consultants are asked to specifywhether the demand for staff from employers has Job Vacancieschanged on the previous month, thereby providing 50 = no change on previous monthan indicator of the number of job vacancies. The 75 Increasing rate of growthsummary indexes shown in this page are derived 70 Vacancy Indexfrom the detailed sector data shown on page 5. 65 60 55 50Growth of demand for staff eased 45to eight-month low 40 35Demand for staff continued to rise in July, extending the 30current period of growth to 22 months. However, the rate of 25 Increasing rate of declineexpansion moderated further to the slowest since November 50 = no change on previous month2010. This was highlighted by the Report on Jobs Vacancies 75Index dropping from 55.9 to 54.3. 70 Temp/Contract Vacancies 65Permanent staff vacancies 60The number of job vacancies available to people seeking 55 Increasing rate of growthpermanent employment increased further in July, albeit at the Increasing rate of decline 50slowest pace in eight months. The Permanent Staff Vacancies 45Index posted 54.4, down from 56.1. Permanent Vacancies 40 35 30Temp/contract vacancies 25The Temporary Staff Vacancy Index registered 52.7 in July, 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011down from 53.7 in the previous month. That signalled amoderate rise in demand for short-term workers that was theslowest since October 2010.Other vacancy indicatorsData from the Office for National Statistics signalled a 5.4%reduction in job vacancies in June compared with one yearpreviously. That was the second consecutive fall and the Job Vacancy Indicatorssharpest since January 2010. Apr’11 May Jun Jul Aug Latest available data signalled that internet-basedrecruitment spending edged up by 0.7% in Q1 2011 after Job Vacancy Index (recruitment industry survey)adjusting for inflation. That followed a -2.8% drop in Q4 2010. 50 = no change on previous month Total 60.3 59.1 57.5 55.9 54.3The Job Vacancies Index monitors the overall demand for Permanent Staff 60.4 59.3 57.6 56.1 54.4staff at recruitment consultancies. An index reading above Temporary Staff 59.1 56.4 55.2 53.7 52.750 signals a higher number of vacancies than the previousmonth. Readings below 50 signal a decline compared with the Other key vacancy dataprevious month. Annual % change Job centre vacancies 3.6 0.9 -4.2 -5.4 n/a Internet recruitment -- 0.7 -- -- -- Sources: Job centre vacancies provided by Office for National Statistics Internet recruitment spending provided by WARC.comAll Intellectual Property Rights owned by Markit Economics Limited
  • Report on Jobs | Recruitment Industry Survey4 Demand for staff by sectorRecruitment consultancies are requested to comparethe demand for staff according to sector with the Demand for staff 50 = no change on previous monthsituation one month ago. 90 Secretarial & Clerical 90 Accounting & Financial 80 80Permanent Staff 70 P erm 70Higher levels of demand were recorded for seven of the P ermeight categories of permanent staff monitored by the survey 60 60 T em pin July. The strongest rates of expansion were signalled for 50 50Engineering/Construction and IT & Computing. The only sector T em p 40 40where a reduction in vacancies was recorded was Hotel &Catering. 30 30 20 20 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010 This year (Last year) Rank Jul11 Rank Jul10Engineer’g/Construction 1 60.9 (1) (63.2) 90 Executive & Professional 90 IT & ComputingIT & Computing 2 60.3 (3) (59.3) 80 80Executive/Professional 3 57.0 (2) (60.4) P erm 70 70 T em pAccounting/Financial 4 53.7 (5) (57.2) 60 60Secretarial/Clerical 5 51.0 (4) (58.1) 50Blue Collar 6 50.6 (6) (53.0) 50 T em p P ermNursing/Medical/Care 7 50.4 (8) (51.7) 40 40Hotel & Catering 8 47.4 (7) (52.3) 30 30 20 20 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010Temporary/contract staffReductions in demand for staff were reported for two of the 90 Blue Collar 90 Engineering/Constructioneight temporary/contract staff sectors in July, namely Nursing/ 80 80Medical/Care and Hotel & Catering. Growth was signalled P erm 70 T em p 70elsewhere, with the strongest rate of expansion indicated forEngineering/Construction employees. 60 60 T em p 50 50 T his year (Last year) P erm Rank Jul11 Rank Jul10 40 40Engineer’g/Construction 1 60.1 (1) (60.0) 30 30IT & Computing 2 55.5 (3) (56.5) 20 20Secretarial/Clerical 3 53.2 (4) (55.4) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010Blue Collar 4 52.4 (2) (57.8)Accounting/Financial 5 52.4 (6) (53.1) 90 Hotel & Catering 90 Nursing/Medical/CareExecutive/Professional 6 51.8 (5) (55.3) 80 80Hotel & Catering 7 46.2 (7) (51.7) 70 T em p 70 T em pNursing/Medical/Care 8 45.2 (8) (46.1) 60 60 50 50 P erm P ermData are presented in the form of diffusion indices whereby 40 40a reading of 50 indicates no change on the previous month. 30 30Readings above 50 signal stronger demand than a month 20 20ago. Readings below 50 signal weaker demand than a month 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010ago.
  • Report on Jobs | Recruitment Industry Survey5 Staff availabilityRecruitment consultants are asked to report whether Staff Availabilityavailability of permanent and temporary staff haschanged on the previous month. An overall indicator 50 = no change on previous month Improving availability 90of staff availability is also calculated. 80 Staff Availability IndexFaster improvement in availability 70of candidates 60Recruitment consultants reported another month of improving 50candidate supply during July. The rates of improvement in both 40permanent and temporary staff availability accelerated during 30the latest survey period. Deteriorating availability 20Availability of permanent staff Improving availability 50 = no change on previous month 90The availability of workers to fill permanent jobs continued toincrease in July. The latest improvement was the strongest for 8018 months. 70 Temp Availability 60Availability of temp/contract staff 50Growth of short-term staff availability quickened to a five-month high in July. Around 27% of panellists reported an 40improvement, compared with 15% that noted a reduction. Permanent Availability 30 Deteriorating availability 20 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Availability of permanent staff Q. Is the availability of candidates for permanent vacancies better, the same or worse than one month ago? Higher Same Lower Net Index S.Adj. % % % +/- IndexKey permanent staff skills reported in short supply:* 2011 Feb 28.6 54.2 17.1 11.5 55.8 51.5 Mar 22.8 57.0 20.2 2.6 51.3 50.3Accountancy/Financial: Audit seniors, Insurance, Financial Apr 19.0 63.7 17.3 1.6 50.8 50.8services. May 18.4 61.8 19.7 -1.3 49.4 50.6Engineering/Construction: Engineers, Technical roles. Jun 18.0 61.7 20.4 -2.4 48.8 51.5Hotel/Catering: Chefs. Jul 21.9 60.2 17.9 4.0 52.0 53.4Secretarial/Clerical: General office.Other: Sales. Availability of temporary/contract staffKey temp skills reported in short supply:* Q. Is the availability of candidates for temporary vacancies better, the same or worse than one month ago?Accountancy/Financial: Accountants. Higher Same Lower Net Index S.Adj. Blue Collar: Labourers, Joiners, Builders, Maintenance, % % % +/- IndexDrivers, Semi skilled. 2011 Feb 30.5 59.0 10.4 20.1 60.0 57.0Hotel/Catering: Chefs. Mar 21.2 61.9 16.9 4.3 52.2 53.9IT/Computing: SAP. Apr 25.5 62.1 12.3 13.2 56.6 54.7Nursing/Medical/Care: Care workers. May 21.8 57.0 21.2 0.6 50.3 52.5Secretarial/Clerical: General office. Jun 25.5 59.9 14.6 10.9 55.5 54.2 Jul 26.8 58.1 15.1 11.6 55.8 56.0*consultants are invited to specify any areas in which they have encountered skillshortages during the latest monthAll Intellectual Property Rights owned by Markit Economics Limited
  • Report on Jobs | Recruitment Industry Survey6 Pay pressuresThe recruitment industry survey tracks both the Pay Pressuresaverage salaries awarded to people placed in 50 = no change on previous monthpermanent jobs each month, as well as average 70hourly rates of pay for temp/contract staff. Permanent Salaries Increasing rate of growth 65Permanent salariesAverage starting salaries for people placed in permanent jobs 60continued to rise in July. Although accelerating from June’s20-month low, the rate of inflation remained below the survey’s 55long-run average. Where a rise in salaries was reported,this was generally attributed by panellists to competition for 50candidates with specific skill-sets. 45Temp/contract pay rates Temp/Contract Hourly Pay RatesGrowth of short-term staff pay rates quickened from June’s 40five-month low in July, but remained modest compared withthe survey’s historical trend. Anecdotal evidence suggested 35 Increasing rate of declinethat budget restrictions at clients had constrained temp pay 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011increases during the latest survey period. UK average weekly earnings Data from the Office for National Statistics signalled Permanent Salaries that annual growth of employee earnings (including Q. Are average salaries awarded to staff placed in permanent bonuses) was 2.3% in the three months to May, up positions higher, the same or lower than one month ago? from 2.0% in April. The acceleration in pay growth Higher Same Lower Net Index S.Adj. was driven by a stronger increase in private sector % % % +/- Index earnings, as public sector pay growth eased slightly. 2011 Jan 11.6 81.8 6.6 5.0 52.5 54.1 Faster rises in earnings were recorded in both the Feb 13.8 79.8 6.4 7.4 53.7 53.7 services and manufacturing sectors. In contrast, Mar 15.7 78.5 5.8 9.9 55.0 55.3 construction saw another decline. Apr 18.3 76.0 5.7 12.6 56.3 56.1 Yr/yr % chg in average weekly earnings (3mma) May 13.6 82.4 4.0 9.6 54.8 54.2 2008 2009 2010 Feb11 Mar Apr May Jun 10.7 82.6 6.7 4.0 52.0 51.2 Whole economy 3.8 0.0 2.3 2.2 2.4 2.0 2.3 Jul 11.7 83.4 4.9 6.7 53.4 53.4 Private sector 3.7 -0.8 2.0 2.0 2.3 1.8 2.2 Public sector 3.6 3.3 3.0 2.3 2.3 2.2 2.1 Services 3.8 0.0 2.4 2.4 2.7 2.3 2.7 Temporary/Contract Pay Rates Manufacturing 3.2 1.2 4.2 1.2 0.9 0.7 1.1 Q. Are average hourly pay rates for temporary/contract staff Construction 2.7 0.5 0.0 -1.3 -0.3 -0.4 -0.7 higher, the same or lower than one month ago? % y /y Higher Same Lower Net Index S.Adj. 9 % % % +/- Index 2011 Jan 7.1 84.5 8.4 -1.4 49.3 49.5 6 Feb 11.6 81.1 7.3 4.4 52.2 52.7 3 Mar 10.2 86.1 3.7 6.6 53.3 52.6 0 Apr 12.7 80.2 7.1 5.6 52.8 53.0 -3 P rivate s ec tor May 11.9 82.3 5.8 6.0 53.0 52.4 P ublic s ec tor Jun 8.1 84.4 7.5 0.7 50.3 50.8 -6 Ja n - 0 1 Ja n - 0 2 Ja n - 0 3 Ja n - 0 4 Ja n - 0 5 Ja n - 0 6 Ja n - 0 7 Ja n - 0 8 Ja n - 0 9 Ja n - 1 0 Ja n - 1 1 Jul 10.9 80.5 8.6 2.3 51.2 51.5
  • Report on Jobs | Recruitment Industry Survey7 Feature productivityProductivity growth weakens Productivity and unit wage costsProductivity growth in the UK economy weakened further in Q1 s e a s o n a lly a d ju s te d , % c h a n g e2011, according to the most up-to-date official data available. 8Output per worker rose just 0.3% on an annual basis, down 6from 0.9% in Q4 2010 and the smallest gain in the current five-quarter period of improvement. 4 2The headline measure of labour productivity has been weaksince the end of the recession. This reflects a slow pace 0of recovery in output coupled with a steady increase in the -2number of workers in employment. In Q1 2011, the number O u tp u t p e r w o r ke rof workers increased by 1.4% compared with a 1.7% rise in -4 Un it w a g e c o s tsoutput. -6 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1Meanwhile, whole economy unit wage costs were 0.6% higheryear-on-year in Q1 2011, compared with an increase of 1.0% Sector comparison – output per jobin the fourth quarter of 2011. This deceleration is explainedby a slower rise in wage costs per worker from 1.9% to 0.8%, c hange on a y ear ago perc entpartially offset by weaker growth in output per worker from 100.9% to 0.3%. 8 6Sector data point to diverging trends. In the manufacturing 4sector, output per job increased by 4.4% in Q1 2011 compared 2with the same period a year previously. However, service 0sector output per job declined by 0.5%, continuing its recent -2weak trajectory. S e r v ic e s e c to r -4 Ma n u f a c tu r in g s e c to r -6 -8 -10 2007Q1 2008Q1 2009Q1 2010Q1 2011Q1 Source: Office for National Statistics. KPMG is a global network of professional firms providing audit, tax and Recruitment Industry Survey The monthly survey features original research data collected via advisory services. KPMG LLP, a UK limited questionnaire by Markit from a panel of 400 UK recruitment and liability partnership, is the UK member firm of KPMG International, a employment consultancies. In 2003/4, some 1,516,000 people were Swiss cooperative. KPMG LLP operates from 22 offices across the employed in either temporary or contract work through consultancies UK with nearly 11,000 partners and staff. The UK firm recorded a and over 565,500 people were placed in permanent positions through turnover of £1.6 billion in the year ended September 2009. consultancies. Monthly survey data were first collected in October The KPMG Trademarks are the sole property of KPMG International 1997 and are collected in the end of each month, with respondents and their use on this report does not imply auditing by or endorsement asked to specify the direction of change in a number of survey variables. of KPMG LLP, KPMG International or any of its member firms of the Markit do not revise underlying survey data after first publication, but information in this report. seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series. The REC is the association for the UK’s £22.5 billion private recruitment and staffing The intellectual property rights to these data are owned by Markit industry with more than 8,000 recruitment Economics Limited. Any unauthorised use, including but not limited to agencies and 6,000 recruitment consultants in membership. There are copying, distributing, transmitting or otherwise of any data appearing is more than 1 million temporary workers registered with UK agencies not permitted without Markit’s prior consent. The publication or release who are deployed in industry, commerce and the public services every of any of these data prior to the general release time is an infringement day. of Markit Economics Limited’s intellectual property rights. Markit shall not have any liability, duty or obligation for or relating to the content or Markit is a specialist compiler of information (“data”) contained herein, any errors, inaccuracies, omissions business surveys and economic indices, or delays in the data, or for any actions taken in reliance thereon. In no including the Purchasing Managers’ Index®(PMI®) series, which is event shall Markit be liable for any special, incidental, or consequential now available for 32 countries and key regions including the Eurozone. damages, arising out of the use of the data. Purchasing Managers’ Index® For more information e-mail economics@markit.com or call +44 and PMI® are registered trade marks of Markit Economics Limited. Markit 1491 461000. and the Markit logo are registered trade marks of Markit Group Limited.All Intellectual Property Rights owned by Markit Economics Limited