Executive summary
inflation since previous month The Report on Jobs is unique in providing the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour
market trends.
The main findings for June are:
Permanent staff appointments fall again, but slight rise in temp billings
Permanent staff appointments continued to fall in June, according to the latest survey data. Moreover, the rate of contraction accelerated to the steepest for three months amid reports of a lack of demand for staff. There was also evidence that the general election had caused some uncertainty and acted as a brake on recruitment activity. Firms were instead keener to offer temporary contracts, with the latest data showing a rise in temp billings (albeit marginal) for the first time since last October.
Permanent salary inflation accelerates to eight-month high
Amid reports of a dearth of suitable candidates, plus a recognition of the ongoing cost of living pressures for workers, permanent staff salaries increased again in June. Moreover, the rate of inflation was the steepest recorded by the survey since
last October. Temporary staff pay also rose, albeit to the weakest degree for three months.
Demand for staff declines modestly
Overall demand for staff continued to fall in June, extending the current downturn to eight months. The rate of contraction was a little steeper compared to May, though remained modest overall. The contraction was also broadly centred on permanent workers as temp vacancy numbers increased – albeit fractionally – for the first time since January.
Second-fastest rise in staff availability since last November
The availability of candidates to fill roles continued to increase in June, extending the current period of growth to 16 months. Permanent and temporary staff availability both rose sharply, though in each case to lesser degrees than in May. Recruitment consultants reported that the latest increase in the supply of staff reflected a combination of redundancies, slow decision-making amongst clients and a lower number of job openings.
