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The latest recruitment report indicates a robust expansion in the numbers of new jobs being created across the UK – both contract and permanent. However, the report also highlights the fact that the job market showed signs of tightening at an increased rate as the availability of candidates to fill vacant positions fell at a steeper rate in May than April. The resulting skill shortages that stemmed from a further decline in staff availability, coupled with strong demand for staff, pushed pay rates up sharply during the month. Temporary staff billings continue to rise strongly The survey confirms that recruitment consultancies’ permanent and temporary business expanded strongly again in May. Billings received from the employment of temporary and contract staff also rose for the twelfth month running in May, rising at an even faster rate than April. Solid expansion Ongoing growth of staff appointments continued to add to the level of private sector employment, as measured by the CIPS/Reuters Employment Index in May. Furthermore, the rate of expansion of staffing levels gathered pace compared to April, with sharper increases in employment recorded across the manufacturing, services and construction sectors. Candidate availability continued to deteriorate The availability of candidates to fill vacant positions declined for the seventh consecutive month in May. Moreover, the sharp rate of deterioration in staff availability accelerated from that recorded a month earlier, as rising staff appointments and fewer redundancies further depleted the pool of available candidates. Subsequently a wide range of skills were reported by agencies as being in short supply. Wage Inflation sharpened Strengthened demand for staff and lower candidate availability pushed pay rates higher in May. Average salaries awarded to people starting new jobs rose for the tenth month running, whilst temporary staff pay rates rose for the twelfth month in a row. In both cases, the rates of increase were the steepest seen during the recent upturn. Commenting on the latest report, Brett Walsh, Head of UK Human Capital at Deloitte reported that: "The latest Report on Jobs suggested a further marked increase in the number of new jobs being created by UK businesses in May. However, higher levels of employment meant that firms are finding it increasingly difficult to attract candidates with suitable skills and experience without offering substantially higher pay rates. Indeed, starting salaries are currently rising at a rate not seen for over three years." Also commenting on the latest report, Gareth Osborne, Managing Director at REC reported that: "It is clear that the job market is now back in full swing, with skills shortages increasing and pay increases rising. These trends put into sharp focus the benefits to the economy of allowing workers from the accession countries to enter the UK and the importance of making it quick and simple for them to enter the country." Report on Jobs is published by the Recruitment & Employment Confederation and Deloitte, and provides a guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers, as well as data on national newspaper recruitment advertising. Jun 7, 2004 Email this article Printer friendly page Previous Page
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