Permanent salaries rise at fastest rate since July 2007, Steeper decline in candidate availability, Permanent and temporary appointments rise at slower rates, Further marked increase in vacancies

1. Page 1 of 3 © Markit Economics Limited 2014
News Release
MARKET SENSITIVE INFORMATION
EMBARGOED UNTIL: 00:01 (UK Time) 8 April 2014
Report on Jobs
Permanent salaries rise at fastest rate since July 2007
Key points:
 Faster increase in permanent salaries but temp
pay growth eases
 Sharper decline in candidate availability
 Growth of staff appointments eases but
remains strong
Summary:
The Recruitment and Employment Confederation
(REC) and KPMG Report on Jobs – published
today – provides the most comprehensive guide to
the UK labour market, drawing on original survey
data provided by recruitment consultancies.
Permanent salary growth accelerates
Starting salaries for people placed in permanent jobs
increased strongly in March, with growth picking up
to the sharpest since July 2007. However,
temporary/contact staff pay increased at the slowest
rate in five months.
Steeper decline in candidate availability
Recruitment consultants indicated further reductions
in the availability of candidates in March. Permanent
staff availability fell at the sharpest rate since
October 2004, while the latest drop in
temporary/contract staff availability was the fastest in
almost 10 years.
Permanent and temporary appointments rise at
slower rates
Rates of growth in both permanent and temporary
staff appointments eased during March, but
remained strong overall.
Further marked increase in vacancies
Demand for staff continued to rise at a marked pace
in March, with the rate of expansion only just shy of
January‟s 15½-year high.
Regional and sector variation
Marked increases in permanent placements were
recorded in each of the four English regions
monitored by the survey, with the strongest growth
indicated in the North.
The Midlands led a broad-based upturn in short-term
staff billings in March. The slowest growth was
recorded in the North.
Private sector demand for staff remained stronger
than that in the public sector during March. The
fastest growth was signalled for private sector
permanent roles, although private sector temporary
vacancies also recorded a strong rise.
In the public sector, solid increases in demand were
seen, with public sector positions registering a faster
rise than private sector roles.
Demand rose for all nine types of permanent staff in
March. The strongest growth was signalled for
Engineering workers, while the slowest increase was
recorded for Blue Collar employees.
Nursing/Medical/Care led a broad-based expansion
of demand for temporary/contract staff in March.
Engineering and Blue Collar were in second and
third places respectively in the demand for staff
„league table‟.

2. Page 2 of 3 © Markit Economics Limited 2014
Comments:
REC Director of Policy Tom Hadley said:
“The trend of growth in people finding jobs across all
industrial sectors and regions continues. Starting
salaries and hourly pay rates are up as employers
battle to entice the talent they need. As real wages
begin to rise across the jobs market people will start
to feel better off.
“However worsening candidate shortages mean that
the number of people available to fill both temporary
and permanent jobs is falling at the sharpest rate in
nearly a decade. We have a core group of long-term
unemployed people whose skills don‟t fit with current
vacancies and are unable to access the jobs market.
“As well as up skilling UK workers, the government
needs to take a joined up approach to immigration. A
priority is addressing the restrictions on visas for
highly skilled workers, which would allow businesses
to access the people they need to grow and create
jobs for more British workers.”
Bernard Brown, Partner and Head of Business
Services at KPMG, comments:
“Britain may not yet be near the levels of full
employment that Chancellor George Osborne
committed to last week but, with permanent and
temporary placements remaining strong, anyone
looking for a new job must be increasingly confident
that their search will soon be over. It‟s particularly
encouraging to note that employers are focusing on
full-time employment, with more organisations
offering contracts for permanent positions than
temporary roles over the past month.
“It also appears that employers are attempting to
encourage candidates to move away from the short-
term mentality of temporary roles by raising the bar
with the starting salaries aligned to permanent
positions. Today‟s data shows „offer salaries‟ picking
up at their sharpest pace for almost 7 years, whilst
contract staff saw their pay increase at the slowest
rate since November 2013. It‟s a welcome sign that
employers have enough confidence to commit their
balance sheets to long term employment plans.
“If that wasn‟t a clear enough indication that
employment is on the up, the data also shows that
demand for staff continues to rise. Marginally up on
the figures for February, the latest data suggests that
engineering, construction and IT are the sectors
hungriest for talent. It‟s all good news, but the next
step will be for candidates to put themselves forward
for the role on offer – something they still seem
unwilling to do.”

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For further information, please contact:
KPMG
Mike Petrook, KPMG Press Office 020 7311 5271 (t), 07917 384 576 (m) or mike.petrook@kpmg.co.uk
REC
Liz Banks / Ed Sexton, REC Press Office, 0207 009 2192 / 2157
Supported by Bray Leino - Simon Peevers: speevers@brayleino.co.uk, 0117 9064534
Markit Economics (technical/data queries):
Jack Kennedy, Senior Economist, Telephone 01491 461087 / jack.kennedy@markit.com
Note to Editors:
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report features original survey data which provides cross-sector and pan-region analysis of the UK labour market, drawing on original survey
data provided by recruitment consultancies.
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Recruitment and Employment Confederation
15 Welbeck Street, London, W1G 9XT. Tel: 020 7009 2100. Fax: 0207 935 4112 Website: www.rec.uk.com
The REC is the professional body representing the UK‟s £24.6 billion private recruitment and staffing industry with more than 8,000
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