REC Report On Jobs: Recruitment activity picks up at the end of 2019

Wednesday, January 15, 2020

Key findings 

  • Permanent placements rise for first time in a year 
  • Vacancy growth remains near decade low 
  • Staff availability continues to fall sharply

Summary

The latest KPMG and REC, UK Report On Jobs showed that hiring conditions improved at the end of 2019. Permanent staff appointments rose for the first time in a year, while temp billings growth picked up from November. According to panellists, some firms had approved new hires following a long period of delayed decision-making and rising business requirements. However, rates of expansion were notably weaker than seen on average over the survey history.

At the same time, demand for staff continued to increase at a relatively sluggish pace, with vacancy growth stuck near a decade low. Lingering uncertainty related to Brexit, alongside generally tight labour market conditions, fed through to a further marked fall in candidate numbers. As a result, starting pay rose for both permanent and short-term staff, and at slightly quicker rates than in November.

The report is compiled by IHS Markit from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies; Cream Personnel Services provides monthly data for this survey.

Regional and Sector Variations

Permanent staff appointments rose in London, the Midlands and the North of England, but declined further in the South of England. Detailed regional data highlighted increases in temp billings across all four monitored areas, with the Midlands seeing by far the steepest rate of growth.

Demand for staff continued to increase across the private sector, while mixed trends were seen for public sector vacancies.

Solid rises in demand were seen for both permanent and temp staff in the private sector, though rates of growth remained historically subdued. In the public sector, vacancies rose for temp workers but fell for permanent roles.

Permanent vacancies rose in eight of the ten sectors monitored by the survey at the end of the year. The steepest increases were seen in Blue Collar and Engineering. In contrast, Retail registered a further marked fall in demand for permanent workers.

Hotel & Catering topped the rankings in terms of temporary staff vacancies in December, followed by Blue Collar. The only sectors to record lower demand for short-term staff were IT & Computing, Retail and Executive & Professional.

Comments

James Stewart, Vice Chair at KPMG, said:

“It would appear that following the clarity of the election outcome, the jobs market finally began to show signs of life with permanent placements rising for the first time in a year.

“However, growth was modest and coming off a historically low base so UK business will be hoping for quick government action to get the UK back on the path to growth including an investment in upskilling the workforce. Lingering uncertainty around the Brexit deal to be secured will continue to weigh on employers’ decision making around hiring and investment over the coming months, as well as job-seekers desires to seek new opportunities.”

You can read more on the REC website: https://www.rec.uk.com/news-and-policy/press-releases/recruitment-activity-picks-up-at-the-end-of-2019