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June REC Job Report

Posted on 16/07/2018 by

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The REC Report on Jobs provides a comprehensive guide to the UK labour market. The June report on jobs highlights both permanent and temporary billings continuously rising along with candidate availability ever deteriorating.

Key Points:

  • Permanent placements and temporary billings continue to rise, but not as sharply as previous months
  • Candidate availability deteriorates at steeper pace
  • Robust demand for staff leads to further marked rises in pay

Permanent Placements

The number of candidates placed into permanent placements and temporary billings continued to rise sharply throughout June despite the rates of expansion easing. Permanent placements witnessed the softest rate of expansion for eight months while on the other hand temporary billings softened to a three-month low.  This proposes business confidence remains robust with more people in work than ever before. This is supported by the unemployment rate remaining at 4.2%; which is still falling below the record set in 1973.

Demand for Staff

The demand for staff surged throughout June to a seven-month high for permanent placements. Likewise, temporary billings strengthened but this was at a slower, yet strong rate compared to previous months. Candidate availability continues to fall at a sharper rate for both permanent and temporary roles with the rate of deterioration declining at the sharpest rate this quarter. The lower candidate availability was cited as the factor hampering growth in staff appointments due to the ever-deteriorating pool of candidates along with job vacancies surging sharply to a seven-month high. As a result, the issue remains; businesses are struggling to hire from the deteriorating pool of candidates for their vacancies due to the shortage in candidate availability. Therefore, starting salaries witnessed a further increase during June, with the rate of inflation close to a three-year high so that businesses can/have to offer higher salaries to draw candidates away from their current employers. This is supported by the fact temporary billings starting salaries also rose sharply, with the rate of growth close to April’s two-year peak. With a deteriorating pool of candidates, businesses continue to spend to attract the right candidates for vacancies they desperately need to fill, however it’s more than just pay for candidates but also about providing progression opportunities and a positive workplace culture.

Accounting and Finance within the Midlands

The Midlands witnessed the steepest increase in permanent placements throughout the UK. Growth of temporary billings was also in line with the national average. To lead on, accounting and finance witnessed demand for staff remaining strong through June for both permanent placement and temporary billings. This was proven by the fact job vacancies increased at a marked pace in the sector. This continues to highlight the issues for businesses because more candidates than ever before are entering employment and with a deteriorating pool of candidates and vacancies ever-increasing, businesses are struggling to hire the skills to enhance their business.

In summary, the report highlights the clear opportunities for candidates looking to take their next step in their careers. This is because employers are increasing starting salaries to attract the right skills and attributes into their business to fill the ever-growing job vacancies. However, candidates are looking for more than starting salaries with career progression and business culture taking a high preference. Therefore, businesses are facing a big challenge in not only recruiting the right candidates but also maintaining their existing workforce because candidate supply can’t meet the demand. So, by engaging with established recruiters provides access to a talent pool that is not widely available. As a result, businesses are making their vacancies as attractive as possible to entice the skills and talent into their business.

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.