South East: Region continues to outpace wider UK trend for permanent jobs growth, reports KPMG
The Report on Jobs: South East* shows a further marked increase in permanent staff placements, reported by recruitment agencies in the South East in July.
The rate of growth strengthened since June and was also greater than the average over the first half of 2014.
Permanent staff placements rose sharply across each of the four surveyed English regions in July. The sharpest increase was seen in the South East of England, while the pace of growth was weakest in the North.
Agencies in the region continued to place temp staff at a sharper rate than the UK average in July. The rate of expansion eased from June’s 13.5-year high, but remained historically strong and was sharper than the average over the first half of the year.
Temporary billings also increased solidly in the three other English regions in July, extending the country-wide sequence of growth to 15 months. The steepest rise was recorded in the Midlands.
Demand for permanent staff in the region rose in July, extending the current sequence of growth to nearly five years. The rate of growth remained sharp and was stronger than the UK average for the eighth month running. Temp demand also continued to increase strongly, albeit at a slower rate than the UK average.
Further substantial decline in permanent staff availability
The availability of permanent candidates in the region’s labour market continued to contract sharply in July. The rate of decline eased from June’s record pace, but was still the third-fastest in the survey history.
Permanent staff availability declined across the three other English regions in July, with the UK-wide rate of contraction reaching a survey record. By far the sharpest fall in candidate availability occurred in the Midlands, where the supply of permanent workers deteriorated at an unprecedented pace.
Recruitment agencies in the region reported a further drop in the supply of candidates for temporary positions in July. The rate of contraction remained strong, and sharper than the average over the current 11-month sequence of decline. Temporary candidate availability declined across the UK at the quickest rate since March 1998. Strong contractions were registered in all four regions, with the steepest fall recorded in the Midlands, followed by London, the South East and the North respectively.
Permanent salary growth at 16-year high
The rate of salary inflation for newly-placed permanent staff in the region reached a 16-year record in July. It was also broadly in line with the UK trend. Permanent salaries have increased every month since July 2012. Salary growth was evident in each of the four English regions for a 14th successive month in July. Furthermore, permanent salaries rose at record rates in the Midlands and the North. Conversely, the only region to report a slowdown in salary growth was London.
Temp pay growth in the region eased from June’s 80-month record in July, but remained strong. Wages for new temporary staff in the region have risen every month since April 2012. July data indicated solid rises in temp rates in each of the other three English regions. The sharpest increase was registered in the Midlands, where temp wage inflation accelerated to the quickest rate in over ten years. The weakest rise recorded in London.
* The Report on Jobs: South East contains original data from the survey of recruitment and employment consultants in the South East of England (excluding London). The report is designed to provide a comprehensive and up-to-date guide to labour market trends and the data are directly comparable with the UK Report on Jobs.
