Job Market Report South: June 18
The Job Market in the South continues to be dominated by the candidate skills shortages – which is a key theme for 2018.
We’ve summarised the key points from IHS Markit & REC’s Job Market Report South. As we’ve said before – if you’re thinking of a change there is no better time as salaries for the South grew at the fastest rate in the UK, for new starters in July.
Here’s the lowdown if you’re seeking a new role or recruiting for jobs in Christchurch Dorset, Bournemouth, Poole and the surrounding areas.
Staff appointments expand at slower rate amid low candidate availability.
Key points from June survey:
- June data signals weaker increases in permanent placements and temp billings
- Sharp reduction in worker availability leads to marked rates of pay inflation
- Demand for both permanent and temporary staff rises sharply
Neil Carberry, REC Chief Executive says:
“It’s a great time for people looking to take the next step in their careers, as employers compete for new staff in a tight market. It’s a candidate’s market out there.
“Across the majority of sectors, both temporary and permanent opportunities are growing, and a lack of candidates means it is no surprise to see starting pay also rising.
“Recruiters report that some of this high vacancy rate may be driven by good demand from companies not being matched by candidate willingness to move in the face of the current economic uncertainty.
“The one sector that stands out as in a different place is retail. Placements are stagnating as the sector reshapes quickly, driven by changing customer demand and stiff competition. But the type of customer service skills retail workers develop are in huge demand in other sectors, and the sheer size of our retail sector means there are still opportunities in stores.”
Growth in permanent staff appointments at seven-month low<
Although permanent placements in the South of England rose solidly during June, the latest increase was the softest recorded since last November. Furthermore, the rate of growth was weaker than that seen across the UK as a whole. Low candidate availability was cited as having limited the latest expansion in permanent staff appointments.
The number of permanent and temporary job vacancies in the South of England continued to rise sharply at the end of the second quarter. That said, growth of demand for staff in the region remained weaker than that seen at the national level in both cases.
Permanent staff availability declines at steeper rate
The availability of candidates to fill permanent job roles in the South of England continued to fall at a historically sharp rate in June. Moreover, the latest reduction in permanent labour supply was the quickest recorded since January and faster than the UK average.
Key permanent staff skills reported in short supply:*
Accounting/Financial: Accountants, Audit, Credit Control, Estimators, Finance, Tax.
Blue Collar: CNC Operators, Forklift Drivers, LGV Drivers, Manufacturing/Warehouse Staff, Welders.
Construction: Quantity Surveyors.
Engineering: Aerospace, Aviation, Electrical, Engineers, Managers, Mechanical, Technicians.
View Engineering vacancies
Executive/Professional: Legal, Science.
IT/Computing: Automation Testers, C#, CAD, DevOps, Digital, IT, Oracle Fusion, PHP, ScrumMasters, Software Engineers, Technology, Web Developers.
Nursing/Medical/Care: Care Workers, Healthcare Assistants, Home Carers, Home Managers, Registered General Nurses, Support Workers.
Secretarial/Clerical: Administration, Office Staff. View Administrative vacancies
Other: B2B Sales, Customer Services, Sales.
Salaries awarded to newly-placed permanent workers in the South of England continued to rise sharply in June amid reports of efforts to attract and secure applicants. The pace of salary inflation remained sharp, despite easing from May’s recent peak, and was also quicker than seen at the UK level.
31.5 % of salaries in the south are higher than in May for those starting a new job.
Overall comparison rate of increase: South of England- 62.9% vs UK – 61.8%
Permanent staff appointments continued to increase across the UK as a whole in June, though the rate of expansion softened to an eight-month low. Notably, all monitored English regions bar the North of England registered weaker increases in permanent placements.
Growth in temp billings at the UK level also slowed during June, with the latest increase the weakest for three months. Again, the only monitored English region to buck the overall slowdown trend was the North of England, which saw the quickest upturn in temp billings since last November.
Recruitment consultancies signalled a further marked reduction in permanent candidate availability across the UK in June. Steeper declines were seen in the South and North of England, while rates of contraction eased in the Midlands and London. At the national level, permanent labour supply fell at the fastest rate for five months.
At the same time, temp labour supply across the UK fell at the steepest pace since last November. A sharp and accelerated reduction in the North of England, alongside a quicker decline in London, offset softer falls in the Midlands and the South of England.
Permanent starters’ salaries continued to rise sharply across all monitored English regions in June, despite rates of increase easing from May. Furthermore, rates of salary inflation remained historically marked in all four English regions, with the quickest rise noted in the North of England.
Short-term pay also rose markedly at the national level during June. The strongest rate of wage inflation was recorded in the South of England, while the weakest was seen in London.
IHS Markit & REC