REC/KPMG Report On Jobs

Wednesday, December 9, 2015

The Recruitment and Employment Confederation (REC) and KPMG monthly Report on Jobs, produced by Markit– published 8th January – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies; Cream Personnel Services provides data monthly for this survey. 

Key points:

Slower rises in both permanent and temporary staff appointments

Permanent salary growth moderates to 26-month low

Candidate availability falls at weaker, but still marked, rate

Growth of staff appointments eases

Although permanent staff placements continued to rise in December, the rate of growth cooled since November’s seven-month peak. Temporary/contract staff billings also increased at a slower pace, with the latest rise also slower than the previous month.          

Stronger rise in demand for staff

Vacancies increased at a sharp and accelerated rate in December. Demand for permanent staff continued to rise at a faster pace than that signalled for short-term workers. 

Decline in candidate availability eases but still sharp

The availability of staff for both permanent and temporary/contract roles fell further in December. Although rates of contraction were slower than in November, they remained marked. 

Pay pressures ease

Salaries awarded to staff placed in permanent jobs increased further in December. However, the rate of growth was the slowest in over two years. Temporary/contract staff hourly pay rates increased at the weakest pace in 21 months.


REC Chief Executive, Kevin Green:

“The UK labour market is in great shape at the start of 2016 but some major challenges lie ahead.

“Skill shortages are a real threat to continued growth in many industries. With talent at a premium, employers will try to attract staff by increasing starting salaries. On general wage growth, as many businesses align annual pay rises to the rate of inflation, we anticipate that growth will remain at 1.5 to 2.5 per cent.

“Businesses will need to manage the introduction of the National Living Wage, which will also have a major impact on pay levels. We wait with some trepidation to see the effect it will have on demand for staff, particularly in low-pay sectors such as healthcare.

“The other bump on the road for business is the EU referendum, which is likely to create uncertainty which could lead to a reduction in hiring.”




Working from offices in Stoke-on-Trent, Cream Personnel Services is a name that is synonymous with recruitment in North Staffordshire and South Cheshire. Established in 1973 we have become the first choice Recruitment Agency for job seekers and employers throughout the region.

To contact the Cream Team about recruitment send an e-mail to:  or call: 01782 262731.

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