Job Market Report South: September 18

Dovetail summarise the key points from the latest report on the job market in the outh

See our latest round up of IHS Markit & REC’s Job Market Report Hampshire, Dorset and the South for September – who gather data from Recruitment agencies in Dorset.

We’ve summarised the key points for September:

  • Permanent placements expand at weakest rate for ten months
  • Overall candidate availability falls at a quicker pace
  • Starting salary inflation accelerates to one-year high

Neil Carberry, Chief Executive at the REC says:

“UK businesses are resilient, but they’re struggling to find the people they need to drive growth and opportunity. Recruiters’ specialist skills help to address this, but with Brexit looming a comprehensive mobility deal with the EU will be needed to underpin prosperity. Higher skills investment, driven by a reformed apprenticeship levy, will also
be essential.

“An effective approach to post-Brexit immigration must acknowledge that there is unmet need for roles of all sorts – not just those filled by the very highest earners. Keeping deliveries going, patients being treated and goods on the shelves means an open approach to workers from elsewhere. Businesses understand the need for control
– but this is not in conflict with openness to those who come to contribute.”

Permanent placements growth softens to ten-month low
The number of people placed in permanent roles in the South of England increased for the twenty-sixth month running in September. That said, the rate of expansion eased to the weakest since November 2017. A number of panellists indicated that candidate shortages had hampered the overall rate of growth.

Recruitment consultants are asked to report whether availability of permanent and temporary staff has
changed on the previous month.

Key permanent staff skills reported in short supply:*

Accounting/Financial: Accountants, Audit, Estimators, Finance, Finance Directors, Financial Planners, Insurance, Paraplanners, Tax.
Blue Collar: HGV Drivers, Quality Managers, LGV Drivers.
Construction: Architecture, Construction, Quantity Surveyors, Town Planners.
Engineering: Automotive, Design, Electrical, Engineers, Rail Engineers, Technicians.
Executive/Professional: Project Managers, Scientists.
Hotel & Catering: Catering, Chefs, Hospitality.
IT & Computing: .Net, Automation, C#, C++, CAD, Data Analysts, DevOps, IT, Java, Software Developers, Technology, Web Developers.
Nursing/Medical/Care: Care Workers, Clinical Professionals, Healthcare Assistants, Home Care Workers, Optometrist, Ultrasound Staff.
Secretarial/Clerical: Administration, Personal Assistants.
Other: B2B Sales, Call Centre, Customer Service, Education, Languages, Sales, Telesales.

Permanent salaries
The rate of starting salary inflation continued to pick up from July’s recent low at the end of the third quarter. Moreover, the rate of pay growth was the quickest recorded for a year and outstripped the UK average. According to panellists, tighter labour market conditions and competition for scarce candidates had underpinned the latest increase in salaries.

Staff appointments
September data signalled a sustained rise in permanent placements across the UK. Although the rate of growth
softened since August, it remained sharp overall. The slowdown was underpinned by softer expansions in the
Midlands and North and South of England. Only London recorded a quicker rate of increase (16-month high).
Temp billings also rose markedly in September, and at a quicker pace than in August. The steepest increase was
recorded in the Midlands, while the slowest rise was seen in the South of England.

Candidate availability
The amount of candidates available for permanent work continued to decline sharply across the UK in September,
despite the rate of deterioration easing fractionally since August. Permanent labour supply fell across each of the four English regions, with the steepest reduction seen in the South of England.

Pay Pressures
Starting salary inflation reached a 41-month peak across the UK in September. Faster rates of pay growth were recorded in all English regions bar the North of England.

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