Accessability Links
Cookies on our website
By continuing to use this website we will assume you are happy to receive cookies as outlined in our cookie policy
Accept Policy

Rate of job growth has eased, says REC and KPMG report

Feb 09
Share this story:
Rate of job growth has eased...

Last month, the number of permanent and temporary positions in the UK's job market increased, but the rate of growth slowed down, according to a new study.

The Report on Jobs - published by the Recruitment and Employment Confederation (REC) and KPMG - provides the most comprehensive data on Britain's labour market and draws on original survey information that comes directly from recruitment consultancies.

It reveals that in January, permanent staff placements continued to rise, but the rate of expansion dropped to a 20-month low. While temporary vacancies also increased, the pace of growth moderated slightly to the least marked since October 2014.

The data indicated that there was a bigger demand for staff last month, with the overall level of vacancies rising at the strongest rate for three months. In addition, sharper expansion for both permanent and temporary placements was recorded for January.

REC and KPMG's report also revealed that average starting salaries for people in permanent positions continued to rise at a marked pace in the first month of 2015, with the rate of growth rising to a four-month high. Pay for temporary staff also increased, but expansion dropped to its lowest in 11 months.

Staff shortages for permanent jobs worsened in January, with the rate of deterioration easing to its slowest for 12 months, while employee availability for temporary positions dropped to its weakest rate for 11 months.

There were regional discrepancies recorded on the new report, with the Midlands registering the fastest increase in permanent jobs, while the slowest rate was found to be in London.

Commenting on the data, Bernard Brown, partner and head of business services at KPMG, said: "They say good news comes in threes and it certainly seems to be the case for the UK economy. The past month has seen a rise in employment, a jump in the number of jobs being created and a growing number of firms prepared to pay more to land the best staff.

“However, the good news is only half the story. Starting salaries may be continuing to rise for the jobs being created today, but this is unsustainable over the long term."

He added that employers will soon reach a point where they cannot afford to offer candidates more money to take the position, no matter how in demand the person's skills are.

While Mr Brown believes this will be a problem in the future, he feels that potential employees in demand today might find it hard "to knock down doors tomorrow".

Search Mindbench.com for the latest management consultancy jobs and consulting recruitment opportunities or contact us on +44(0)207 089 9017.

Share this story:
Add new comment
Jobs Related to this Post
5 result(s) found 
Page 1 of 1 

$80k-$110k base plus bonus, benefits
Nairobi (Kenya) or Lagos (Nigeria)
Our client's mission is to unlock the power of capital to make a strong return and a lasting difference in frontier markets. They provide investment advisory services in frontier markets
£50k-£70k plus bonus, benefi...
Central London, occasional work from h...
Senior Analyst - Client & Brand Insights - Central London and work from home occasionally Our client is a growing specialist research firm which focusses on providing research and insight on
£70k-£150k plus bonus, benef...
Dubai
Are you the kind of person that loves to problem solve?  Do you thrive on coaching people?  How do you feel about seeing the direct impact of your work?  Our client is a global
£80K- £150K
London/UK
My client is an independent, medium sized consulting firm with a focus on transformational change. With a flat structure and work centred around values, this firm work side-by-side with their clients
£34,320
Milton Keynes
We are working with the procurement arm of an international bank. Their consultancy services aim to perform a comprehensive optimisation of the procurement function - they combine vast practical