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January REC Job Report

Posted on 12/02/2018 by

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The REC Report on Jobs provides a comprehensive guide to the UK labour market. The January report on jobs highlights permanent placements increasing at the quickest rate since April 2015.

Key points being: 

  • Stronger rise in permanent placements contrasts with softer temp billings growth
  • Starting salary inflation hits 31-month record amid growing candidate shortages
  • Growth of demand for staff edges down slightly but remains marked

Permanent Placements

January witnessed permanent placements rising at the joint fastest rate since April 2015. This continues to show that business confidence remains strong, with the unemployment rate remaining set to decline below the 42-year record throughout the country. This is further supported by the fact temporary placements continue to grow, however at a softened pace in comparison to the previous 10 months.

Demand for Staff

The demand for staff continues to rise sharply despite the rate of growth slowing down to a 13-month record low. This is supported by the fact staff vacancies rise at a historically marked pace for both permanent and temporary placements. As a result of this, candidate availably witnessed a steep decline, which was also at a historically sharp rate during January, again for both permanent and temporary placements. Consequently, this causes a shortage of candidates because less people are available to fill more vacancies. Because of this, businesses continue to spend significantly more on starting salaries so that firms can attract the right candidates from within the demeriting pool of candidates. This is supported by the fact they increased to a 31-month record high for permanent placements and temporary placements witnessed a sharp increase but the weakest rate of growth for 10 months.

Accounting and Finance within the Midlands

Rates of growth throughout the Midlands remains sharp which is supported by the fact temporary billings rose by far the quickest rate in the Midlands compared to other regions.  This is important because the accounting and finance sector was ranked second in terms of demand for staff. As a result, businesses are clearly finding it difficult to fill vacancies therefore are continuing to spend more money on starting salaries to recruit the right candidate from an ever-shortening pool of candidate.

In summary, the report suggests that there continues to remain a great opportunity for candidates looking to move jobs due to amount of vacancies available as well as the salaries businesses are offering. But, on the other hand businesses face challenging conditions in the labour market because candidate supply can’t meet the demand. The report highlights the point that there is a continuing trend in jobs being filled by recruiters due to the fact businesses find it challenging to find candidates. This increasing competition for good quality staff is driving up starting salaries with employers willing to pay higher wages to attract the right people.

Employers are increasingly turning to specialist recruiter Addington Ball to enhance their options, as Addington Ball has an established and highly developed network of financial professionals operating in the Midlands region. If your business is not getting the appropriate calibre of candidate, then call Addington Ball on 01926 290290 for a confidential conversation about your requirements.

Addington Ball is a leading finance recruiter based in the Midlands specialising in the recruitment of finance and accountancy professionals. If you are considering a change of scenery or a fresh challenge, search for your next opportunity via our job search page.