The report found that in the permanent sector, growth has been solid and October 2015 witnessed the sharpest increase in four months. Temporary and contract billings were also found to have risen at a faster pace with the rate of expansion at a three-month high.
It’s also positive news with regards to wages as salaries for the permanent sector remained strong and was similar to the rates seen during the third quarter. Temporary and contract staff hourly pay also increased at a solid pace in October although it was slower than that seen for permanent salaries.
Despite this, businesses are still struggling to find candidates and fill vacancies. The availability of staff to fill permanent roles fell again in October although it has eased to the slowest rate of decline since January. Temporary and contract staff availability also decreased markedly and at a slightly faster pace compared to September.
Furthermore, the latest Report on Jobs has also found that there have been regional and sector variations. The Midlands experienced the biggest increase in demand for permanent staff in October and this was closely followed by the North. Rates of expansion in London and in the South were modest.
The sharpest rate of growth for temporary and contract staff was seen in the Midlands whereas the North saw the weakest increase. Demand for all jobs still remains considerably stronger in the private sector compared to the public sector.
It’s excellent news for finance and accounting professionals as they have remained the most sought-after when it comes to permanent staff. IT and Computing came in second place and the slowest rise was reported for hotel and catering workers.
When it comes to temporary and contract vacancies, nursing/medical/care professionals retained the top spot and the weakest increase was seen for executive and professional staff.
Following the release of the latest report, the Chief Executive of REC, Kevin Green commented:
“The jobs-rich recovery looks set to continue, with more people being placed into permanent positions last month and businesses across the UK creating more vacancies.”
A long-standing problem the UK continues to face however is the skills shortage. Green continued:
“Employers report an increasing number of skills shortage areas in both the public and private sector. Starting salaries continue to rise as businesses battle to attract the people they need but it’s unclear how much longer this trend can continue.”
If you are struggling to attract candidates with the right skills, please feel to contact Choralis Consulting and we will be more than happy to help.