Permanent placement growth is slowing, according to REC & Markit report

Salary increases remain solid, as permanent placement growth is easing according to the monthly REC & Markit report released yesterday.

Salary increases remain solid if slightly weaker, as permanent placement growth is at its slowest since May 2013. These are just two of the findings in this month’s Report on Jobs released yesterday by Markit and REC (Recruitment and Employment Confederation).

Kevin Green, REC CEO, reflected that the slowdown in permanent placement growth while the temporary market hits a 13-month high indicates changing employer behaviour and the uncertainty felt in the UK labour market. Amid the introduction of National Living Wage, and the uncertainty surrounding Brexit, employers look for flexibility by switching from permanent to temporary hiring strategies.

While general salary increases remain on an upward trend albeit slightly weaker in March, the introduction of the National Living Wage saw the expected increase in temporary staff wage at a rate not seen since mid-2007.

All categories of permanent staff saw an increase in demand overall however with the strongest in Accountancy, followed by Nursing and the weakest in Construction followed by Blue Collar

Candidate availability continued to deteriorate in April 2016. This marks a continuation of the three year decline in permanent staff availability: although at a reduced pace.

Public sector demand for permanent staff declined.

The report cited other recent indicators with the ONS rise in vacancies of 1.2% in Q1 being the lowest in four years while internet recruitment is relatively weak too.

These results reflect Prism Executive Recruitment’s experiences within the current Management Consultancy market. While unsurprising amid the countdown to the ‘Brexit’ referendum and gathering economic clouds, we are keenly watching to see if the market picks up in Q3 or continues to reflect an uncertain economy.

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