July permanent placement growth in the UK dipped to nine-month low, according to the latest Report on Jobs from the Recruitment and Employment Confederation. Meanwhile it also highlighted that the rate of expansion was the weakest recorded since October 2017.
UK Recruitment businesses suggested that candidate scarcities affected permanent staff appointments. The REC also reported that the level of both permanent and temporary candidates reduced severely in July. Furthermore, low candidate readiness and healthy demand for staff resulted in a further abrupt increase in perm salaries. Whilst, temp pay rates increased at a noticeable and faster rate close to April’s two-year high.
The need for staff intensified in July, with general job vacancies growing at the fastest rate for eight months. This was influenced most by the private sector, with demand for both permanent and temporary staff continuing to increase at rates that comfortably exceeded those witnessed in the public sector.
The study also showed that temp billings rose strongly, with the degree of growth rising from June’s recent low.
Sophie Wingfield, REC Head of Policy, remarked, “The rise in interest rates for only the second time in a decade may leave some people feeling the pinch. But a new job is one way people can ease the burden on their finances. With our data showing starting salaries continuing to rise, the latest official government figures suggest that we are finally seeing the effects of a tighter labour market feed through to pay.
“Following a period of turbulence and big name closures, the World Cup and heatwave had retailers enjoying a ‘summer bounce’ and basking in the sun with demand for temporary staff on the up with many businesses positively revising their hiring plans. Right now students on their summer break can make the most of these opportunities and cash-in while gaining valuable experience and new skills.”
Geographically permanent placements increased greatest in the Midlands and the South of England, but growth weakened in the North of England. Permanent staff appointments decreased a small amount in London.
In terms of sectors, IT & Computing was the most sought after category for permanent workers in July. But noticeable rises in vacancies were also seen in the remaining nine job categories. The softest rise in demand was reported for retail staff.
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