Steven Jagger kpmg report on jobs in May

UK Labour Market 6th
June 2014
The most up-to-date source of monthly UK labour market data and analysis
Report on Jobs
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
25
30
35
40
45
50
55
60
65
70
75
Temp/Contract Billings
Permanent Placements
Increasing rate of decline
Increasing rate of growth
50 = no change on previous month
Staff Appointments via Recruitment Consultancies
Availability of permanent candidates falls at
sharpest rate since November 1997
Commenting on the latest survey results, Bernard Brown, Partner and Head of Business
Services at KPMG, said:
“Trying to fill vacancies in the current climate must feel like wandering through a hall of
mirrors for the UK’s employers. No sooner are they in a position to reflect the improving
economy by creating roles and offering tempting salaries, than the search for talent seems to
reach a dead end, with candidates either preferring to hide in the shadows or failing to offer
the appropriate skills.
“The latest figures also suggest that employees want more from their workplace than better
pay and better benefits. Even though starting salaries continue to rise, job seekers are
sending out a very clear message that remuneration is not the only reward they are after.
With candidate availability at its lowest point for almost 17 years, individuals are saying that
prospective employers are going to need to widen their offer to tempt top talent to move. It
could mean that we have finally reached a point where employers have to consider reshaping
roles, working arrangements and their own expectations or risk being caught out by an
endless cycle of unfilled roles and unfulfilled workers struggling to cope with increasing
workloads.”
Markit
Henley on Thames
Oxon RG9 1HG, UK
Tel: +44 1491 461000
Fax: +44 1491 461001
email: economics@markit.com
Copies of the report are available
on annual subscription from
Markit. For subscription details
please contact:
economics@markit.com
The Report on Jobs is a monthly
publication produced by Markit and
sponsored by the Recruitment and
Employment Confederation and KPMG
LLP.
The report features original survey
data which provide the most up-to-
date monthly picture of recruitment,
employment, staff availability and
employee earnings trends available.
1 Executive summary
2 Appointments
3 Vacancies
4 Sectoral demand
5 Staff availability
6 Pay pressures
7 Special feature
Key points from the May survey:
Permanent placements and temporary billings continue to rise strongly...
...despite sharply falling candidate availability
Further strong rise in permanent salaries, while temp pay growth accelerates




Report on Jobs | Recruitment Industry Survey
The Report on Jobs is unique in providing the most
comprehensive guide to the UK labour market,
drawing on original survey data provided by
recruitment consultancies and employers to provide
the first indication each month of labour market
trends.
The main findings for May are:
Steepest drop in permanent staff
availability for 16½ years...
The availability of candidates to fill permanent roles fell further
in May. Moreover, the rate of deterioration accelerated to the
sharpest since November 1997. Temporary/contract staff
availability was also down markedly, with the latest drop only
slightly slower than April’s 13-year record.
...contributes to robust pay growth
Although easing slightly from April’s 81-month high, the rate of
growth in permanent salaries remained considerable in May.
Temporary/contract staff hourly pay rates meanwhile rose at
the fastest pace since December 2007.
Staff placements continue to
increase at marked pace...
Permanent placements growth remained marked in May,
despite moderating slightly since the previous month.
Temporary/contract staff billings also rose strongly, with the
rate of expansion quickening from April’s ten-month low.
...supported by strongly rising
vacancies
Overall demand for staff continued to increase at a marked
rate in May, although the pace of growth eased to a five-month
low. Permanent vacancies again rose slightly faster than
temporary/contract roles.
1 Executive summary
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
25
30
35
40
45
50
55
60
65
70
Staff Appointments
25
30
35
40
45
50
55
60
65
70
50 = no change on previous month 50=no change on previous month
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
35
40
45
50
55
60
65
70
Staff Availability and Earnings Growth
Skill shortages
Average permanent salaries (LHS)
90
80
70
60
50
40
30
50 = no change on previous month 50 = no change on previous month (inverted)
inverted - RHS)
(Availability of staff
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Temp/Contract Vacancies
Permanent Vacancies
25
30
35
40
45
50
55
60
65
70
75 Increasing rate of growth
Demand for staff
All Intellectual Property Rights owned by Markit Economics Limited

Recruitment consultancies report on the number of
people placed in permanent jobs each month, and
their revenues (billings) received from placing people
in temporary or contract positions at employers.
Staff placements continued to rise strongly in May, with growth
of both permanent and temporary appointments remaining
marked.
Further strong rise in permanent
placements
May data pointed to another rise in the number of people
placed in permanent roles by recruitment consultancies.
The rate of expansion remained substantial, despite easing
slightly since April. Around 43% of panellists reported
higher placements, versus just under 19% that signalled a
fall. Increased client demand and rising confidence among
employers were reported to have underpinned the latest
expansion of permanent placements. However, some
respondents commented that shortages of suitable candidates
had restricted placements growth.
The Midlands continued to register the strongest growth
of permanent placements in May, while the slowest rise was
indicated in London.
Temp billings growth remains
marked
Agencies’ billings from the employment of temporary/contract
staff continued to rise in May. The rate of expansion remained
marked, having quickened slightly from April’s ten-month low.
Growing business requirements at clients were cited as a factor
driving temp billings higher.
Temp billings growth was fastest in the Midlands, followed
by the South. London and the North posted similar robust rates
of expansion.
An index reading above 50 signals a higher number of
placements/billings than the previous month. Readings below
50 signal a decline compared with the previous month.
2 Staff appointments
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
25
30
35
40
45
50
55
60
65
70
75
Staff Appointments via Recruitment Consultancies
2013 Dec 39.1 34.6 26.4 12.7 56.3 64.6
2014 Jan 49.8 30.3 19.9 29.8 64.9 62.1
Feb 49.8 33.7 16.5 33.2 66.6 65.2
Mar 49.7 32.7 17.6 32.1 66.0 62.6
Apr 50.1 31.3 18.6 31.4 65.7 63.8
May 43.4 38.0 18.6 24.9 62.4 62.8
Higher Same Lower Net Index S.Adj.
% % % +/- 50 = no chg Index
Permanent Staff Placements
Q. Please compare the number of staff placed in permanent
positions with the number one month ago.
2013 Dec 38.9 43.8 17.3 21.6 60.8 63.1
2014 Jan 25.1 45.1 29.8 -4.7 47.6 62.8
Feb 42.2 37.8 20.0 22.2 61.1 61.7
Mar 40.8 46.6 12.6 28.2 64.1 59.9
Apr 37.8 41.9 20.3 17.4 58.7 58.9
May 39.2 43.2 17.6 21.6 60.8 59.1
% % % +/- 50 = no chg Index
Temporary/Contract Staff Billings
Q. Please compare your billings received from the
employment of temporary and contract staff with the
situation one month ago.

3 Vacancies
Recruitment consultants are asked to specify
whether the demand for staff from employers has
changed on the previous month, thereby providing
an indicator of the number of job vacancies. The
summary indexes shown in this page are derived
from the detailed sector data shown on page 5.
Growth of demand remains strong,
despite easing to five-month low
Demand for staff continued to rise at a considerable rate in
May. Although slipping from 67.1 in April, to a five-month low
of 66.3, the Report on Jobs Vacancy Index continued to signal
a substantial rate of growth.
Permanent vacancies continued to rise faster than
temporary roles.
Public & private sector vacancies
Private sector demand for staff remained considerably
stronger than that in the public sector, according to the latest
data.
In both sectors, vacancy growth was faster for permanent
employees than temporary staff.
Other vacancy indicators
Data from the Office for National Statistics showed that job
vacancies were up 22.7% on an annual basis in the three
months to April.
Latest available data signalled that internet-based
recruitment spending rose by 10.1% on an annual basis in the
fourth quarter of 2013, the fastest growth for two years.
The Job Vacancies Index monitors the overall demand for
staff at recruitment consultancies. An index reading above
50 signals a higher number of vacancies than the previous
month. Readings below 50 signal a decline compared with the
previous month.
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Temp/Contract Vacancies
Permanent Vacancies
25
30
35
40
45
50
55
60
65
70
75
25
30
35
40
45
50
55
60
65
70
75
Job Vacancies
Vacancy Index
Job Vacancy Indicators
Jan’14 Feb Mar Apr May
Job Vacancy Index (recruitment industry survey)
Other key vacancy data
Annual % change
Sources: Job centre vacancies provided by Office for National Statistics
Internet recruitment spending provided by WARC.com
Total 67.4 66.9 67.2 67.1 66.3
Permanent Staff 67.5 67.0 67.3 67.2 66.4
Temporary Staff 65.1 64.9 65.8 64.9 64.4
Public: perm 57.3 56.7 56.0 56.0 57.1
Public: temp 54.8 56.3 59.7 57.8 55.2
Private: perm 72.1 74.9 72.1 72.6 71.4
Private: temp 61.2 66.8 69.9 67.6 69.4
Job centre vacancies 18.0 19.7 22.1 22.7 n/a
Internet recruitment 10.1 -- -- -- --
Public & private sector vacancies (not seasonally adjusted)

Recruitment consultancies are requested to compare
the demand for staff according to sector with the
situation one month ago.
Permanent Staff
Accounting/Financial took over top spot in the demand for staff
‘league table’ in May. Engineering dropped to second place,
although continued to register a marked rate of expansion
overall. The slowest growth was signalled for Blue Collar
workers.
4 Demand for staff by sector
Demand for staff
20
30
40
50
60
70
80
90 Secretarial & Clerical
Perm
Tem p
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
20
30
40
50
60
70
80
90 Accounting & Financial
Tem p
Perm
20022003 20042005200620072008 2009201020112012 2013
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
20
30
40
50
60
70
80
90 Executive & Professional
Perm
Tem p
2002 2003 2004 20052006 2007 20082009 2010 20112012 2013
20
30
40
50
60
70
80
90 IT & Computing
Tem p
Perm
20
30
40
50
60
70
80
90
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Tem p
Blue Collar
Perm
20
30
40
50
60
70
80
90
200220032004200520062007200820092010201120122013
Nursing/Medical/Care
Tem p
Perm
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
20
30
40
50
60
70
80
90 Hotel & Catering
Tem p
Perm
Engineering; Construction
This year (Last year)
Rank May'14 Rank May'13
This year (Last year)
Rank May'14 Rank May'13
*Non-seasonally adjusted data. Prior to April 2013
Engineering/Construction was reported as a single category.
Data are presented in the form of diffusion indices whereby
a reading of 50 indicates no change on the previous month.
Readings above 50 signal stronger demand than a month
ago. Readings below 50 signal weaker demand than a month
ago.
Blue Collar 1 67.8 (2) (55.8)
Engineering* 2 64.6 (8) (50.0)
Secretarial/Clerical 3 64.2 (4) (53.8)
Construction* 4 63.3 (9) (49.4)
Hotel & Catering 5 63.2 (5) (53.0)
Executive/Professional 6 62.9 (7) (52.1)
IT & Computing 7 62.9 (3) (55.6)
Accounting/Financial 8 61.5 (6) (52.4)
Nursing/Medical/Care 9 60.7 (1) (63.7)
Accounting/Financial 1 69.3 (4) (54.7)
Engineering* 2 69.0 (8) (50.0)
Executive/Professional 3 68.3 (3) (57.1)
IT & Computing 4 67.8 (2) (57.9)
Nursing/Medical/Care 5 65.3 (1) (58.7)
Construction* 6 64.8 (8) (50.0)
Secretarial/Clerical 7 64.4 (5) (52.0)
Hotel & Catering 8 62.4 (7) (50.3)
Blue Collar 9 60.5 (6) (52.0)
46
50
54
58
62
66
70
74
78
Engineering Construction
Perm Temp
Temporary/contract staff
Blue Collar workers were the most in-demand type of
temporary staff in the latest survey period. Mirroring the trend
for permanent employees, Engineering took second place in
the table. Nursing/Medical/Care staff saw the slowest rise in
demand for their services.

Recruitment consultants are asked to report whether
availability of permanent and temporary staff has
changed on the previous month. An overall indicator
of staff availability is also calculated.
Availability of permanent staff
Permanent staff availability declined further in May. Moreover,
the rate of decline accelerated to the sharpest since November
1997. Approximately 41% of panellists reported lower
permanent staff availability, compared with just under 8% that
signalled a rise.
The South posted the sharpest fall in permanent staff
availability in May, although rates of decline were marked
across all four English regions.
Availability of temp/contract staff
Although easing slightly from April’s multi-year peak, the rate
of decline in temporary/contract staff availability remained
substantial in May.
Lower temp availability was recorded in each of the four
monitored English regions, with the fastest reduction signalled
in the Midlands.
5 Staff availability
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Temp Availability Permanent Availability
20
30
40
50
60
70
80
90Improving availability
Deteriorating availability
20
30
40
50
60
70
80
90
Staff Availability
Staff Availability Index
Improving availability
Deteriorating availability
2013 Dec 10.1 50.1 39.8 -29.8 35.1 39.6
2014 Jan 27.3 42.2 30.5 -3.2 48.4 41.1
Feb 16.8 49.4 33.8 -17.0 41.5 39.0
Mar 13.8 47.9 38.3 -24.5 37.8 38.0
Apr 12.2 50.1 37.7 -25.5 37.2 37.6
May 7.8 51.6 40.5 -32.7 33.6 34.9
Key permanent staff skills reported in short supply:*
Accountancy/Financial: Accounts, Credit controllers,
Finance, Payroll. Blue Collar: Drivers, Manufacturing,
Trades. Engineering: Engineers, Rail. Executive/
Professional: HR, Marketing, Operations managers, Senior
management, Solicitors. Nursing/Medical/Care: RGNs,
RMNs. IT/Computing: Business analysts, Cloud, Digital
media, eCommerce, Games technology, Java, Senior
dev, PHP, Project managers. Secretarial/Clerical: Legal
secretaries. Other: Customer service, Languages, Sales,
Teachers, Tour operators, Utilities.
Key temp skills reported in short supply:*
Accountancy/Financial: Payroll. Blue Collar: Assembly
workers, Drivers. Construction: General construction,
Plant operators, Surveyors. Engineering: Electronic,
Engineers. Executive/Professional: Project managers,
Telecommunications. Hotels/Catering: Chefs. IT/
Computing: Business intelligence, Developers, .Net, SQL.
Nursing/Medical/Care: RGNs, RMNs. Secretarial/Clerical:
Reception. Other: Customer service.
Availability of permanent staff
Q. Is the availability of candidates for permanent vacancies
better, the same or worse than one month ago?
Better Same Worse Net Index S.Adj.
% % % +/- Index
2013 Dec 16.0 52.8 31.2 -15.2 42.4 43.6
2014 Jan 24.6 53.2 22.3 2.3 51.1 44.6
Feb 17.6 57.1 25.3 -7.7 46.1 43.6
Mar 10.6 60.2 29.1 -18.5 40.8 41.7
Apr 10.3 56.6 33.2 -22.9 38.6 39.8
May 9.8 57.6 32.6 -22.8 38.6 40.1
Availability of temporary/contract staff
Q. Is the availability of candidates for temporary vacancies
better, the same or worse than one month ago?
Better Same Worse Net Index S.Adj.
% % % +/- Index
*consultants are invited to specify any areas in which they have encountered skill
shortages during the latest month

The recruitment industry survey tracks both the
average salaries awarded to people placed in
permanent jobs each month, as well as average
hourly rates of pay for temp/contract staff.
Permanent salaries
Average starting salaries for people placed in permanent jobs
by recruitment consultancies continued to rise in May. The rate
of growth remained marked, despite easing slightly from April’s
81-month high. A combination of strong demand and candidate
shortages was reported to have underpinned salary increases.
Permanent salary growth was strongest in the South during
May, while the North posted the slowest rise.
Temp/contract pay rates
Hourly rates of pay for staff in temporary/contract employment
rose again in May, with the rate of growth accelerating to the
sharpest since December 2007.
Each of the four English regions saw increases in temp
pay, with the Midlands recording the sharpest rise.
6 Pay pressures
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
35
40
45
50
55
60
65
70
Temp/Contract Hourly Pay Rates
Permanent Salaries
Pay Pressures
2013 Nov 22.3 74.3 3.4 19.0 59.5 59.7
Dec 21.7 75.8 2.5 19.2 59.6 60.6
2014 Jan 23.8 70.3 5.8 18.0 59.0 60.5
Feb 25.5 71.7 2.8 22.7 61.4 61.7
Mar 29.0 67.4 3.6 25.3 62.7 62.2
Apr 32.1 65.8 2.1 30.1 65.0 64.7
May 33.3 62.4 4.3 29.0 64.5 63.9
% % % +/- Index
Permanent Salaries
Q.Areaverage salaries awarded tostaffplaced in permanent
positions higher, the same or lower than one month ago?
2013 Nov 15.3 82.2 2.4 12.9 56.4 55.6
Dec 9.0 88.1 2.9 6.2 53.1 54.7
2014 Jan 14.9 81.6 3.5 11.4 55.7 55.0
Feb 15.4 82.1 2.5 13.0 56.5 56.7
Mar 12.9 83.9 3.2 9.7 54.8 54.6
Apr 13.3 85.4 1.3 12.0 56.0 56.5
May 18.6 76.9 4.5 14.2 57.1 57.2
% % % +/- Index
Temporary/Contract Pay Rates
Q. Are average hourly pay rates for temporary/contract staff
higher, the same or lower than one month ago?
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
-6
-3
0
3
6
9
Public sector
Private sector
Annual percent change
Yr/yr % chg in average weekly earnings (3mma)
2011 2012 2013 Dec'13 Jan'14 Feb Mar
Whole economy 2.4 1.4 1.2 1.2 1.4 1.7 1.7
Private sector 2.5 1.5 1.5 1.5 1.6 2.0 1.8
Public sector 2.5 1.3 0.9 0.3 0.5 0.9 0.7
Services 2.8 1.4 1.1 1.0 1.1 1.5 1.5
Manufacturing 1.6 1.8 2.2 2.6 3.2 3.2 2.9
Construction 0.9 0.9 0.0 1.0 2.9 3.2 2.9
UK average weekly earnings
Data from the Office for National Statistics signalled
that annual growth of employee earnings (including
bonuses) held steady at 1.7% in the three months to
March. Private sector pay growth remained stronger
than that in the public sector.

7 Feature International comparisons
KPMG LLP, a UK limited liability partnership, is a
subsidiary of KPMG Europe LLP and operates
from 22 offices across the UK with over 12,000
partners and staff. The UK firm recorded a turnover of £1.8 billion
in the year ended September 2012. KPMG is a global network of
professional firms providing Audit, Tax, and Advisory services. We
operate in 156 countries and have 152,000 professionals working in
member firms around the world. The independent member firms of
the KPMG network are affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. KPMG International provides
no client services.
The REC is the professional body representing
the UK’s £24.6 billion private recruitment and
staffingindustrywithmorethan8,000recruitment
agencies and 6,000 recruitment consultants in membership. There are
over 1 million temporary workers registered with UK agencies who are
deployed in industry, commerce and the public services every day.
is a leading global diversified provider of
financial information services. We provide
productsthatenhancetransparency,reduceriskandimproveoperational
efficiency. Our customers include banks, hedge funds, asset managers,
central banks, regulators, auditors, fund administrators and insurance
companies. Founded in 2003, we employ over 3,000 people in 11
countries. For more information, please see www.markit.com.
Recruitment Industry Survey
The monthly survey features original research data collected via
questionnaire by Markit from a panel of 400 UK recruitment and
employment consultancies. In 2010/11, some 1,049,333 people were
employed in either temporary or contract work through consultancies
and 604,193 people were placed in permanent positions through
consultancies. Monthly survey data were first collected in October
1997 and are collected in the end of each month, with respondents
asked to specify the direction of change in a number of survey variables.
Markit do not revise underlying survey data after first publication, but
seasonal adjustment factors may be revised from time to time as
appropriate which will affect the seasonally adjusted data series.
The intellectual property rights to these data are owned by or licensed to
MarkitEconomicsLimited.Anyunauthoriseduse,includingbutnotlimitedto
copying, distributing, transmitting or otherwise of any data appearing is not
permitted without Markit’s prior consent. The publication or release of any
of these data prior to the general release time is an infringement of Markit
Economics Limited’s intellectual property rights. Markit shall not have any
liability, duty or obligation for or relating to the content or information (“data”)
contained herein, any errors, inaccuracies, omissions or delays in the data,
or for any actions taken in reliance thereon. In no event shall Markit be liable
for any special, incidental, or consequential damages, arising out of the use
of the data. Purchasing Managers’ Index®
and PMI®
are either registered
trade marks of Markit Economics Limited or licensed to Markit Economics
Limited. Markit is a registered trade mark of Markit Group Limited.
UK unemployment rate in context
The UK unemployment rate dropped to 6.8% in the first
quarter of 2014, according to the latest figures from the Office
for National Statistics.
This compares favourably with the EU average of 10.5%.
Spain continues to register by far the highest unemployment
rate, at 25.3%.
Unemployment rates in Italy and France remain in double-
digits, at 12.7% and 10.4% respectively. The jobless rate in the
Netherlands stands at 7.2%.
Japan (3.6%), Austria (4.9%), Germany (5.1%) and the United
States (6.3%) all have lower unemployment rates than the UK
at present.
Sources: ONS, Eurostat, Bureau of Labor Statistics.
Unemployment rates in selected countries
0 5 10 15 20 25 30
Japan
Austria
Germ any
United States
United Kingdom
Netherlands
France
Total EU
Italy
Spain
Unem ploym ent Rate %

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