Uk job market July - Vacancy growth accelerates to six-year high - Pay growth gathers pace...The rate of inflation of permanent staff salaries quickened in July to its highest for over two years. Temp pay rates rose at the sharpest pace since January 2008.

1. Page 1 of 3 © Markit Economics Limited 2013
News Release
MARKET SENSITIVE INFORMATION
EMBARGOED UNTIL: 00:01 (UK Time) 8 August 2013
Report on Jobs
Staff placements surge in July
Key points:
 Permanent staff appointments rise at fastest
rate since March 2010
 Strongest increase in temp billings for 29
months
 Vacancy growth accelerates to six-year high
 Pay growth strengthens
Summary:
The Recruitment and Employment Confederation
(REC) and KPMG Report on Jobs – published
today – provides the most comprehensive guide to
the UK labour market, drawing on original survey
data provided by recruitment consultancies.
Faster growth of permanent and temporary
appointments...
The number of people placed in jobs by recruitment
consultancies rose at a strong and accelerated pace
in July. Permanent placements increased at the
sharpest rate since March 2010, while temp billings
were up at the fastest pace in almost two-and-a-half
years.
...as demand for staff strengthens further
Supporting higher appointments was a further rise in
demand for staff during July. Overall job vacancies
increased at the strongest rate in six years.
Pay growth gathers pace...
The rate of inflation of permanent staff salaries
quickened in July to its highest for over two years.
Temp pay rates rose at the sharpest pace since
January 2008.
...reflecting lower staff availability
Recruitment consultants indicated a decline in the
availability of candidates to fill job vacancies during
the latest survey period. Lower availability was
signalled for both permanent and temporary staff,
with the former registering the sharper fall.
Regional and sector variation
Higher permanent staff appointments were signalled
in all four monitored English regions during the latest
month, with the fastest expansion recorded in the
North.
Growth of temp billings was broad-based across the
English regions in July. The strongest increases
were seen in the North and the South.
Public sector demand for permanent staff fell in July,
following a rise in the previous month. Public sector
demand for temp staff meanwhile rose at a solid
pace that was the fastest so far this year.
Private sector demand for staff strengthened in July.
Stronger rates of growth were signalled for both
permanent and temporary workers, with the latest
expansions the sharpest since data were first
available in December 2011.
Higher levels of demand were signalled for all nine
types of permanent staff monitored by the survey in
July. The strongest rate of expansion was indicated
for Engineering workers, as has been the case
throughout the past four months. The slowest
vacancy growth was recorded for Blue Collar staff.
All nine categories of short-term staff posted
improved levels of demand in the latest survey
period. Nursing/Medical/Care posted the fastest
growth, followed by Construction. The weakest
expansion was signalled for Accounting/Financial
workers.

2. Page 2 of 3 © Markit Economics Limited 2013
Comments:
REC chief executive Kevin Green says:
“The jobs market continues to skyrocket with
permanent employment and temporary placements
at three and two year highs, and vacancy growth
accelerating to a six year high. A combination of
confidence returning to the UK economy and higher
employer demand have contributed to this
impressive set of figures.
“Starting salaries accelerated in July reaching the
highest for 26 months. This is an early indicator of
increased competition for candidates and skills
shortages in a growing number of sectors. In addition
to this, hourly rates for temp workers increased at
the strongest rate since January 2008.
“We anticipate starting salaries increasing over the
coming months as the economy strengthens and
competition to secure talent hots up.”
Bernard Brown, Partner and Head of Business
Services at KPMG, comments:
“With house price and service sector figures moving
in an upward direction, indications are that the
economy is getting stronger. Confidence is certainly
evident amongst employers; with many conserving
cash for a number of years, they are beginning to
invest in their people and, as the search for talent is
stepped up, the jobs market is looking buoyant
again.
“High levels of demand for staff were signalled
across every sector we analysed and the same can
be said across each region of the UK. In a sign of
the surge in confidence, the latest figures also
represent the sharpest increase in permanent
placements for more than 3 years and the biggest
growth in demand for six. This does, of course mean
that a gap exists between the demand for staff and
the quality of candidates available so the onus is on
candidates to improve their skills and prove their
capability.
“If the current trend continues employers will,
however, be faced with another conundrum. For
some time staff have sat tight refusing to move when
job security was low. Now the best staff will be
looking for better offers so employers will need to
strike a balance between recruiting new blood and
retaining their best employees.”

3. Page 3 of 3 © Markit Economics Limited 2013
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Mike Petrook, KPMG Press Office 020 7311 5271 (t), 07917 384 576 (m) or mike.petrook@kpmg.co.uk
REC
Jennifer Jackson / Ingrid Semanikova, REC Press Office, 01753 827 282 / rec@octopuscomms.net
Markit Economics (technical/data queries):
Jack Kennedy, Senior Economist, Telephone 01491 461087 / jack.kennedy@markit.com
Note to Editors:
The Report on Jobs is a monthly publication produced by Markit on behalf of the Recruitment & Employment Confederation and KPMG. The
report features original survey data which provides cross-sector and pan-region analysis of the UK labour market, drawing on original survey
data provided by recruitment consultancies.
The Report features original research data from Markit, collected via questionnaire 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. Data for the monthly survey were first collected in October 1997 and are
collected at the end of each month, with respondents asked to specify the direction of change in a number of survey variables.
All Index numbers are calculated from the percentages of respondents reporting an improvement, no change or decline. These indices vary
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A regional Report on Jobs series is now available comprising four regional reports tracking labour market trends across the Midlands, the
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market trends and the data are directly comparable with the UK Report on Jobs.
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Recruitment and Employment Confederation
15 Welbeck Street, London, W1G 9XT. Tel: 020 7009 2100. Fax: 0207 935 4112 Website: www.rec.uk.com
The REC is the professional body representing the UK’s £24.6 billion private recruitment and staffing industry with more than 8,000
recruitment 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.
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