- The document is a report on the UK labour market from the Recruitment and Employment Confederation and KPMG.
- It summarizes that permanent staff placements grew at the fastest rate since April 2011 in June, while temp billings increased at the strongest pace since November, indicating stronger growth in both permanent and temporary hiring.
- Demand for staff from employers also increased sharply in June, with the rate of vacancy growth reaching a three-year high, showing rising job opportunities across both permanent and temporary positions.
UK Labour Market Data Signals Stronger Jobs Growth
1. UK Labour Market 8th
July 2013
The most up-to-date source of monthly UK labour market data and analysis
Report on Jobs
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
25
30
35
40
45
50
55
60
65
70
75
Temp/Contract Billings
Permanent Placements
Increasing rate of decline
Increasing rate of growth
50 = no change on previous month
Staff Appointments via Recruitment Consultancies
Permanent placements growth at 26-month
high in June
Commenting on the latest survey results, Bernard Brown, Partner and Head of
Business Services at KPMG, said:
“It’s often said that things happen ‘in threes’ and the latest jobs data has provided the
hat-trick, complementing positive reports about the services sector and UK GDP.
“Certainly as Mark Carney reflects on the first week in his new job, he must be delighted
as all the signs seem to be pointing towards an economy on an upward trajectory.
“The latest figures reveal permanent placements enjoying their highest growth rates for
over two years and temporary roles being filled at the quickest pace since Christmas.
Perhaps the sun has finally come out to shine on the jobs market and economy at large?
“Employers seem to think so. Many have stepped up their search for staff with demand
for staff accelerating to a three year high. Confidence is even beginning to show itself
with employers prepared to increase the salaries they offer to new employees.
“At the same time, candidates are still hedging their bets. We are still witnessing a
cautious approach with many hanging on to the jobs they know, fearing the insecurity
that comes with starting somewhere new. Yet, if the economy continues along its
current path, it is likely that candidates will also step out in increasing numbers as the
year goes on.”
Markit
Henley on Thames
Oxon RG9 1HG, UK
Tel: +44 1491 461000
Fax: +44 1491 461001
email: economics@markit.com
Copies of the report are available
on annual subscription from
Markit. For subscription details
please contact:
economics@markit.com
The Report on Jobs is a monthly
publication produced by Markit and
sponsored by the Recruitment and
Employment Confederation and KPMG
LLP.
The report features original survey
data which provide the most up-to-
date monthly picture of recruitment,
employment, staff availability and
employee earnings trends available.
1 Executive summary
2 Appointments
3 Vacancies
4 Sectoral demand
5 Staff availability
6 Pay pressures
7 Special feature
Key points from June survey:
Permanent staff appointments rise at fastest pace since April 2011
Strongest increase in temp billings for seven months
Vacancy growth at three-year high
Pay growth accelerates
2. Report on Jobs | Recruitment Industry Survey
The Report on Jobs is unique in providing the most
comprehensive guide to the UK labour market,
drawing on original survey data provided by
recruitment consultancies and employers to provide
the first indication each month of labour market
trends.
The main findings for June are:
Stronger increases in permanent
and temporary appointments
Growth of permanent staff placements accelerated markedly
in June, reaching the fastest rate for over two years. Similarly,
temporary/contract staff billings rose at a much sharper pace,
with the latest increase the strongest in seven months.
Demand for staff rises at strongest
rate in three years
The rate of expansion of job vacancies accelerated to a
three-year high in June. Sharper increases in demand were
signalled for both permanent and temporary workers.
Pay growth accelerates
Permanent staff salaries rose at the fastest pace for 23 months
in June. Temporary/contract staff pay growth also quickened,
reaching the sharpest since March 2008.
Permanent staff availability down,
but temp availability rises
Recruitment consultants signalled a further drop in the
availability of candidates for permanent roles during June.
However, temp availability continued to improve.
1 Executive summary
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
25
30
35
40
45
50
55
60
65
70
Staff Appointments
Temp/Contract Billings
Permanent Placements
25
30
35
40
45
50
55
60
65
70
50 = no change on previous month 50=no change on previous month
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
35
40
45
50
55
60
65
70
Staff Availability and Earnings Growth
Skill shortages
Average permanent salaries (LHS)
90
80
70
60
50
40
30
50 = no change on previous month 50 = no change on previous month (inverted)
inverted - RHS)
(Availability of staff
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Temp/Contract Vacancies
Permanent Vacancies
50 = no change on previous month
25
30
35
40
45
50
55
60
65
70
75 Increasing rate of growth
Increasing rate of decline
Demand for staff
All Intellectual Property Rights owned by Markit Economics Limited
3. Report on Jobs | Recruitment Industry Survey
Recruitment consultancies report on the number of
people placed in permanent jobs each month, and
their revenues (billings) received from placing people
in temporary or contract positions at employers.
Latest data signalled faster increases in both permanent staff
placements and temporary/contract staff billings during June.
Permanent placements rise at
strongest rate for 26 months...
The number of people placed in permanent jobs by recruitment
consultancies increased for a ninth consecutive month in June.
Moreover, the rate of expansion picked up markedly since
May to the sharpest pace since April 2011. Anecdotal evidence
pointed to stronger client demand, improved confidence and
quicker decision-making as factors behind higher placements.
The South posted the fastest rise in permanent
appointments during the latest survey period, closely followed
by the North. The Midlands saw a solid expansion, while
London recorded a moderate increase.
...while temp billings growth
quickens to seven-month high
Billings received by employment agencies from the
employment of temporary/contract staff rose for the second
month running in June. Accelerating sharply since May, the
rate of growth reached the strongest since last November.
Higher temp billings were generally attributed by panellists to
increased client activity levels.
Temporary/contract staff billings rose in each of the four
monitored English regions, although in the case of the Midlands
growth was marginal. The North posted the strongest increase.
An index reading above 50 signals a higher number of
placements/billings than the previous month. Readings below
50 signal a decline compared with the previous month.
2 Staff appointments
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
25
30
35
40
45
50
55
60
65
70
75
Temp/Contract Billings
Permanent Placements
Increasing rate of decline
Increasing rate of growth
50 = no change on previous month
Staff Appointments via Recruitment Consultancies
2013 Jan 41.7 29.1 29.2 12.5 56.3 53.2
Feb 39.1 28.5 32.4 6.8 53.4 52.7
Mar 38.3 34.0 27.6 10.7 55.3 50.8
Apr 38.9 36.7 24.4 14.5 57.2 52.5
May 39.2 30.7 30.1 9.1 54.6 53.4
Jun 47.9 31.5 20.6 27.2 63.6 57.6
Higher Same Lower Net Index S.Adj.
% % % +/- 50 = no chg Index
Permanent Staff Placements
Q. Please compare the number of staff placed in permanent
positions with the number one month ago.
2013 Jan 21.3 38.9 39.8 -18.5 40.7 55.5
Feb 32.9 36.7 30.4 2.5 51.3 51.6
Mar 37.6 37.7 24.7 12.9 56.4 51.0
Apr 26.1 42.7 31.3 -5.2 47.4 48.7
May 34.8 42.7 22.5 12.2 56.1 52.6
Jun 41.3 39.1 19.6 21.7 60.8 56.4
Higher Same Lower Net Index S.Adj.
% % % +/- 50 = no chg Index
Temporary/Contract Staff Billings
Q. Please compare your billings received from the
employment of temporary and contract staff with the
situation one month ago.
4. Report on Jobs | Recruitment Industry Survey
3 Vacancies
All Intellectual Property Rights owned by Markit Economics Limited
Recruitment consultants are asked to specify
whether the demand for staff from employers has
changed on the previous month, thereby providing
an indicator of the number of job vacancies. The
summary indexes shown in this page are derived
from the detailed sector data shown on page 5.
Vacancy growth at three-year high
The Report on Jobs Vacancies Index climbed to its highest
level for three years in June. At 59.1, up from 54.8 in May, the
index signalled a strong pace of expansion.
Faster increases in demand were recorded for both
permanent and temporary staff vacancies during the latest
survey period. Rates of growth were at 36- and 27-month
highs respectively.
Public & private sector vacancies
Public sector permanent vacancies rose for the first time in six
months during June, while public sector temporary/contract
vacancies were unchanged from May.
In the private sector, both permanent and temporary/
contract vacancies increased at the fastest pace since data
were first available in December 2011.
Other vacancy indicators
Data from the Office for National Statistics showed that job
vacancies were up 10.3% on an annual basis in the three
months to May. That was up slightly from 9.9% in the three
months to April and the fastest growth for nearly three years.
Latest available data signalled that internet-based
recruitment spending rose by 3.1% in the fourth quarter of
2012. That followed a -0.8% fall in the third quarter.
The Job Vacancies Index monitors the overall demand for
staff at recruitment consultancies. An index reading above
50 signals a higher number of vacancies than the previous
month. Readings below 50 signal a decline compared with the
previous month.
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Temp/Contract Vacancies
Permanent Vacancies
50 = no change on previous month
25
30
35
40
45
50
55
60
65
70
75
Increasing rate of growth
Increasing rate of decline
25
30
35
40
45
50
55
60
65
70
75
Job Vacancies
50 = no change on previous month
Vacancy Index
Increasing rate of growth
Increasing rate of decline
Job Vacancy Indicators
Feb’13 Mar Apr May Jun
Job Vacancy Index (recruitment industry survey)
50 = no change on previous month
Other key vacancy data
Annual % change
Sources: Job centre vacancies provided by Office for National Statistics
Internet recruitment spending provided by WARC.com
Total 56.1 54.8 54.9 54.8 59.1
Permanent Staff 56.1 54.7 54.9 54.8 59.2
Temporary Staff 56.0 55.5 53.9 55.2 57.7
Public: perm 47.8 49.5 45.0 46.7 52.8
Public: temp 48.5 52.3 47.3 50.8 50.0
Private: perm 63.0 57.4 58.9 64.9 66.6
Private: temp 58.8 56.0 54.4 60.2 63.9
Job centre vacancies 7.1 9.1 9.9 10.3 n/a
Internet recruitment 3.1 -- -- -- --
Public & private sector vacancies (not seasonally adjusted)
5. Report on Jobs | Recruitment Industry Survey
Recruitment consultancies are requested to compare
the demand for staff according to sector with the
situation one month ago.
Permanent Staff
Growth of demand was broad-based across all nine types of
permanent staff monitored by the survey in June. Engineering
remained the most sought-after category, posting a substantial
increase in vacancies. The slowest rates of expansion were
indicated for Blue Collar and Hotel & Catering workers.
4 Demand for staff by sector
50 = no change on previous month
Demand for staff
20
30
40
50
60
70
80
90 Secretarial & Clerical
Perm
Tem p
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20
30
40
50
60
70
80
90 Accounting & Financial
Tem p
Perm
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20
30
40
50
60
70
80
90 Executive & Professional
Perm
Tem p
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20
30
40
50
60
70
80
90 IT & Computing
Tem p
Perm
20
30
40
50
60
70
80
90
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Tem p
Blue Collar
Perm
20
30
40
50
60
70
80
90
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Nursing/Medical/Care
Tem p
Perm
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
20
30
40
50
60
70
80
90 Hotel & Catering
Tem p
Perm
Engineering; Construction
This year (Last year)
Rank Jun'13 Rank Jun'12
This year (Last year)
Rank Jun'13 Rank Jun'12
*Non-seasonally adjusted data. Prior to April 2013
Engineering/Construction was reported as a single category.
Data are presented in the form of diffusion indices whereby
a reading of 50 indicates no change on the previous month.
Readings above 50 signal stronger demand than a month
ago. Readings below 50 signal weaker demand than a month
ago.
Engineering* 1 64.9 n/a n/a
Nursing/Medical/Care 2 64.7 (1) (59.0)
Construction* 3 58.1 n/a n/a
IT & Computing 4 57.3 (3) (51.4)
Blue Collar 5 55.9 (4) (49.2)
Hotel & Catering 6 55.3 (7) (47.5)
Secretarial/Clerical 7 55.0 (2) (52.3)
Executive/Professional 8 54.3 (5) (48.4)
Accounting/Financial 9 53.0 (6) (47.6)
Engineering* 1 69.4 n/a n/a
IT & Computing 2 61.6 (1) (57.1)
Executive/Professional 3 60.9 (3) (53.9)
Nursing/Medical/Care =4 60.7 (2) (54.8)
Construction* =4 60.7 n/a n/a
Accounting/Financial 6 57.8 (5) (49.9)
Secretarial/Clerical 7 55.6 (4) (52.8)
Blue Collar 8 53.6 (6) (48.3)
Hotel & Catering 9 53.4 (7) (46.4)
Temporary/contract staff
Mirroring the trend seen for permanent employees,
Engineering workers were the most in-demand category
of temporary/contract staff during June. This was closely
followed by Nursing/Medical/Care. The weakest increase was
signalled for Accounting/Financial staff.
46
50
54
58
62
66
70
74
Engineering Construction
Perm Tem p
6. Report on Jobs | Recruitment Industry Survey
Recruitment consultants are asked to report whether
availability of permanent and temporary staff has
changed on the previous month. An overall indicator
of staff availability is also calculated.
Availability of permanent staff
The availability of candidates to fill permanent job vacancies
fell for a second consecutive month in June. Although
moderate, the rate of decline was nevertheless the sharpest
since December 2012.
Lower permanent staff availability was recorded in London,
the Midlands and the North, whereas the South posted a rise.
Availability of temp/contract staff
In contrast to the trend seen for permanent staff, the
availability of candidates for short-term roles increased at a
faster pace in June. The latest rise was the strongest in seven
months.
London and the Midlands both registered solid increases
in temporary/contract staff availability in the latest survey
period. The South saw no change, while the North recorded a
marginal decline.
5 Staff availability
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Temp Availability Permanent Availability
50 = no change on previous month
20
30
40
50
60
70
80
90Improving availability
Deteriorating availability
20
30
40
50
60
70
80
90
Staff Availability
50 = no change on previous month
Staff Availability Index
Improving availability
Deteriorating availability
2013 Jan 33.7 49.7 16.6 17.1 58.6 49.0
Feb 23.1 59.8 17.1 6.0 53.0 48.9
Mar 19.6 60.2 20.2 -0.7 49.7 48.5
Apr 19.5 61.1 19.4 0.1 50.0 50.1
May 16.3 64.1 19.6 -3.3 48.4 49.6
Jun 15.5 61.0 23.6 -8.1 45.9 48.3
Key permanent staff skills reported in short supply:*
Accountancy/Financial: Accountants, Credit, Insurance.
Blue Collar: Distribution, Welders.
Engineering: Automotive, Electrical, General engineering, Oil
& gas, Structural.
Executive/Professional: Legal, Marketing, PR, Senior
managers.
Hotels/Catering: Chefs.
IT/Computing: Developers, Digital marketing, PHP, SQL,
Web developers.
Nursing/Medical/Care: Nurses.
Secretarial/Clerical: Admin, Receptionists.
Other: Buyers, Sales.
Key temp skills reported in short supply:*
Blue Collar: Cleaners, HGV drivers, LGV drivers.
Construction: Wirers.
Engineering: CNC programmers, Engineers, Oil & gas.
Executive/Professional: Advertising.
Hotels/Catering: Chefs.
IT/Computing: Java, .Net, PHP, VM.
Secretarial/Clerical: Admin, Legal secretaries.
Other: Customer services.
Availability of permanent staff
Q. Is the availability of candidates for permanent vacancies
better, the same or worse than one month ago?
Better Same Worse Net Index S.Adj.
% % % +/- Index
2013 Jan 29.5 59.2 11.3 18.2 59.1 52.0
Feb 23.5 62.7 13.7 9.8 54.9 51.6
Mar 17.3 66.1 16.6 0.7 50.4 51.5
Apr 16.8 65.5 17.7 -1.0 49.5 51.4
May 15.6 66.8 17.6 -2.0 49.0 51.0
Jun 23.4 59.7 17.0 6.4 53.2 53.1
Availability of temporary/contract staff
Q. Is the availability of candidates for temporary vacancies
better, the same or worse than one month ago?
Better Same Worse Net Index S.Adj.
% % % +/- Index
All Intellectual Property Rights owned by Markit Economics Limited
*consultants are invited to specify any areas in which they have encountered skill
shortages during the latest month
7. Report on Jobs | Recruitment Industry Survey
The recruitment industry survey tracks both the
average salaries awarded to people placed in
permanent jobs each month, as well as average
hourly rates of pay for temp/contract staff.
Permanent salaries
Average starting salaries awarded to successful candidates
placed in permanent jobs rose further in June. Moreover, the
rate of inflation accelerated to a solid pace that was the fastest
in 23 months. Those panellists reporting a rise in salaries cited
shortages of quality candidates and greater numbers of senior-
level placements.
Higher salaries were registered in all four monitored
English regions. The strongest increase was signalled in the
North, while London posted the weakest rise.
Temp/contract pay rates
June data indicated a sharper rise in hourly pay rates for
temporary/contract staff. The latest increase was the strongest
since March 2008. Higher demand for short-term workers was
reported as the principal reason behind temp pay inflation.
Marked rises in temp pay were recorded in the Midlands
and the South, whereas London and the North posted marginal
increases.
6 Pay pressures
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
35
40
45
50
55
60
65
70
Temp/Contract Hourly Pay Rates
Permanent Salaries
Increasing rate of decline
Increasing rate of growth
50 = no change on previous month
Pay Pressures
2012 Dec 7.4 87.4 5.2 2.3 51.1 52.3
2013 Jan 10.1 82.6 7.3 2.8 51.4 52.5
Feb 11.3 82.3 6.3 5.0 52.5 52.9
Mar 10.7 84.1 5.2 5.5 52.7 52.7
Apr 10.1 84.8 5.1 4.9 52.5 52.1
May 13.1 80.4 6.5 6.6 53.3 51.8
Jun 14.4 79.6 6.0 8.4 54.2 53.2
Higher Same Lower Net Index S.Adj.
% % % +/- Index
Permanent Salaries
Q.Areaverage salaries awarded tostaffplaced in permanent
positions higher, the same or lower than one month ago?
2012 Dec 4.8 90.1 5.1 -0.3 49.9 51.4
2013 Jan 5.6 88.9 5.4 0.2 50.1 49.8
Feb 7.0 87.3 5.7 1.3 50.6 50.3
Mar 8.8 89.3 1.9 6.9 53.5 52.1
Apr 7.7 86.8 5.5 2.2 51.1 51.6
May 8.6 87.1 4.4 4.2 52.1 52.0
Jun 11.9 83.7 4.4 7.5 53.7 53.9
Higher Same Lower Net Index S.Adj.
% % % +/- Index
Temporary/Contract Pay Rates
Q. Are average hourly pay rates for temporary/contract staff
higher, the same or lower than one month ago?
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-6
-3
0
3
6
9
Public sector
Private sector
Annual percent change
Yr/yr % chg in average weekly earnings (3mma)
2010 2011 2012 Jan'13 Feb Mar Apr
Whole economy 2.3 2.4 1.5 1.2 1.1 0.6 1.3
Private sector 2.0 2.5 1.6 1.1 0.8 0.1 1.3
Public sector 3.3 2.5 1.6 1.9 1.7 1.4 1.2
Services 2.3 2.8 1.5 1.3 1.2 0.6 1.3
Manufacturing 4.0 1.6 1.8 1.6 1.7 2.1 2.8
Construction 0.3 0.8 0.9 -1.3 -1.2 -2.4 -0.8
UK average weekly earnings
Data from the Office for National Statistics signalled
that annual growth of employee earnings (including
bonuses) picked up to 1.3% in the three months to
April, the highest in 2013 so far. Similar rates of pay
growth were signalled in the private and public sectors.
8. Report on Jobs | Recruitment Industry Survey
7 Feature PMI employment trends
KPMG LLP, a UK limited liability partnership, is a
subsidiary of KPMG Europe LLP and operates
from 22 offices across the UK with over 12,000
partners and staff. The UK firm recorded a turnover of £1.8 billion
in the year ended September 2012. KPMG is a global network of
professional firms providing Audit, Tax, and Advisory services. We
operate in 156 countries and have 152,000 professionals working in
member firms around the world. The independent member firms of
the KPMG network are affiliated with KPMG International Cooperative
(“KPMG International”), a Swiss entity. KPMG International provides
no client services.
The REC is the professional body representing
the UK’s £24.6 billion private recruitment and
staffingindustrywithmorethan8,000recruitment
agencies and 6,000 recruitment consultants in membership. There are
more than 1 million temporary workers registered with UK agencies
who are deployed in industry, commerce and the public services every
day.
Markit is a specialist compiler of
business surveys and economic indices,
including the Purchasing Managers’ Index®
(PMI®
) series, which is
now available for 32 countries and key regions including the Eurozone.
For more information e-mail economics@markit.com or call +44
1491 461000.
Recruitment Industry Survey
The monthly survey features original research data collected via
questionnaire by Markit from a panel of 400 UK recruitment and
employment consultancies. In 2010/11, some 1,049,333 people were
employed in either temporary or contract work through consultancies
and 604,193 people were placed in permanent positions through
consultancies. Monthly survey data were first collected in October
1997 and are collected in the end of each month, with respondents
asked to specify the direction of change in a number of survey variables.
Markit do not revise underlying survey data after first publication, but
seasonal adjustment factors may be revised from time to time as
appropriate which will affect the seasonally adjusted data series.
The intellectual property rights to these data are owned by Markit
Economics Limited. Any unauthorised use, including but not limited to
copying, distributing, transmitting or otherwise of any data appearing is
not permitted without Markit’s prior consent. The publication or release
of any of these data prior to the general release time is an infringement
of Markit Economics Limited’s intellectual property rights. Markit shall
not have any liability, duty or obligation for or relating to the content or
information (“data”) contained herein, any errors, inaccuracies, omissions
or delays in the data, or for any actions taken in reliance thereon. In no
event shall Markit be liable for any special, incidental, or consequential
damages, arising out of the use of the data. Purchasing Managers’ Index®
and PMI®
are registered trade marks of Markit Economics Limited. Markit
and the Markit logo are registered trade marks of Markit Group Limited.
Upturn in services hiring boost private sector
employment
Latest Purchasing Managers’ Index (PMI) data from Markit/
CIPS illustrate a pick-up in jobs growth across the UK private
sector during June. The overall rate of employment growth
was the fastest in over five-and-a-half years.
However, trends varied by sector. The fastest rate of
expansion in staffing levels was signalled by service providers,
with the latest rise being the most marked since August 2007.
Recruitment of new staff was principally linked by service
providers to increased business volumes. Some companies
took on new employees in line with growing confidence over
future economic conditions.
Construction firms meanwhile reported an increase in
employment for the first time in four months. Although modest,
the rate of hiring was the sharpest since last September.
Manufacturers however indicated broadly stagnant staffing
levels during June, following a slight increase in the previous
month.
All Intellectual Property Rights owned by Markit Economics Limited
PMI employment by sector
30
35
40
45
50
55
60
65
1998 2000 2002 2004 2006 2008 2010 2012
Manufacturing
Services
Construction
Markit/CIPS PMI Employment Index, sa, 50 = no change
Source: Markit