Summary of Key Findings from REC’s UK Report on Jobs – June Survey

KPMG and REC’s latest UK Report on Jobs, compiled by S&P Global, indicates a continued decline in permanent placements during June. This trend is attributed to general election uncertainty and reduced worker demand. The contraction rate was steep in three months, as firms hesitated to make long-term hiring commitments. Stafforce, part of the Nicholas Associates Group of companies, is pleased to be part of the panel that contributes towards these findings by providing our own statistics. See below a summary of these findings:

Shift Towards Temporary Staffing

In contrast to the decline in permanent placements, there was a marginal increase in temporary billings for the first time since October last year. Companies opted for temporary solutions to meet their staffing needs amidst the uncertain hiring climate.

Acceleration in Permanent Salary Growth

The survey revealed that permanent salary growth accelerated in June, reaching an eight-month high. This increase is driven by firms’ willingness to raise starting pay to attract candidates and address ongoing cost-of-living pressures. Temporary pay rates also increased, though at a slower pace compared to May.

Rising Staff Availability

June saw a continued rise in the availability of candidates, marking the 16th consecutive month of growth. Both permanent and temporary staff availability increased, although the growth rate was slightly lower than in May. Factors contributing to this trend include redundancies, slow client decision-making, and fewer job openings.

Regional Variations in Hiring Trends

The decline in permanent placements was observed across England, with the steepest fall in the South and only a marginal reduction in the Midlands. Conversely, temporary billings grew in the Midlands and North of England, while the South of England and London continued to see declines.

Sector-Specific Demand

The survey highlighted sector-specific trends, with six out of ten broad sectors experiencing a drop in permanent staff demand. The steepest reductions were in the Secretarial/Clerical and IT & Computing sectors. On the other hand, Engineering saw strong demand growth. Temporary vacancies followed a similar pattern, with IT & Computing seeing the steepest decline and Engineering leading growth, followed closely by Blue Collar.

Overall Demand for Staff

Overall demand for staff continued to fall in June, marking the eighth consecutive month of downturn. The rate of contraction was slightly steeper compared to May but remained modest. The demand reduction was primarily focused on permanent positions, while temporary vacancy numbers saw a slight increase for the first time since January.

 

We are pleased to have contributed towards these findings. You can read the full report through this link: Report on Jobs: Permanent salary growth accelerates in June, despite further drop in placements :: The REC