KPMG and the Recruitment and Employment Confederation (REC) have released their latest UK Report on Jobs survey. It showed a further sharp increase in hiring activity midway through the fourth quarter, with both permanent placement and temp billings continuing to rise strongly.
The survey - which drew its data from a panel of around 400 UK recruitment and employment consultancies - showed there were marked increases in vacancies for both permanent and short-term staff, which combined with a substantial drop in overall candidate supply is thought to have led to further increases in starting pay in an effort to attract and secure workers. Notably, the rate of starting salary inflation hit a fresh series record in November, even though it has risen each month since March 2021. Temp pay softened only slightly from October's all-time record.
Neil Carberry, Chief Executive of the REC, said:
“Today’s figures emphasise again how far we have come this year – it is certainly a great Christmas if you’re looking for a job. This is always the busiest part of the year for recruiters, but demand for new staff across the autumn has been exceptional. Because of this high demand, starting salaries and temp rates continue to rise, making it even more attractive to be looking for a new opportunity in 2022. Hiring companies will need to make sure they get their offer right – not just on pay – and take an inclusive approach if they are to avoid losing out.”
The data also showed that growth of demand was considerably stronger for private sector workers than public sector staff. The biggest increase in vacancies was recorded for permanent roles in the private sector, with the IT & Computing industry posting the steepest increase, followed by Hotel and Catering. The lowest upturn was for permanent staff in the public sector.
Claire Warnes, Head of Education, Skills and Productivity at KPMG UK, stated:
“The confidence of businesses to hire remains reassuringly robust. We’ve seen nine months of growth in permanent placements and rising vacancies for the past 10 months as the economy bounces back. The data points to a strong end to the year, but that hunger to expand could be tested as the jobs market becomes ever tighter. The pace of demand for workers is running far faster than supply can keep up with, which is draining an already diminished pool of available talent and feeding into inflationary pressures.”
However, in the last few days positivity over rising employment rates and the hiring spree over the past few months looks like it could be cut short, as the Omicron variant of Covid-19 threatens economic recovery.
