Member Article

Rise in Northern jobs offset by falling supply

Permanent job appointments in the North of England rose at their highest rate since February last month, while supply for these posts deteriorated at its sharpest rate since December 2007.

A report from KPMG collected data from recruitment and employment consultancies across the North East, North West, Yorkshire and Humberside.

It showed a “solid” increase in the number of people placed in permanent jobs in the North of England, following a “stagnation” in the market during April.

KPMG said that nationally, permanent staff placements rose at their sharpest pace since November last year, while higher staff appointments were recorded in three of the four regions surveyed in England, with London as an exception.

Temporary or contract staff posts were also on the rise, while growth in both permanent and temporary posts in the North rose for the 45th consecutive month.

Despite these positive figures, availability of staff was down at its sharpest rate since December 2007, which KPMG’s Newcastle office put down to a desire for job security over a higher salary.

Mick Thompson, KPMG’s Newcastle office senior partner, said: “It looks as if months of rhetoric are finally becoming a reality.

“With Northern permanent placements growing at the fastest pace since February, it seems that private sector jobs are boosting the chances of economic growth.

“The latest figures, which also showed continued growth in demand for permanent and temporary staff, certainly give the strongest indication for some time that the region’s jobs market is on an upward trajectory.

“However, with uncertainty still the watch-word, employees’ desire for job security and permanent positions is undoubtedly outweighing moves for more money.

“It is therefore no surprise that fewer candidates are making themselves available to recruiters. Until that changes we are likely to see demand for skilled staff remain high.

“It’s a real catch-22 situation, but one for which a solution will be at hand if the economy continues to show signs of improvement.”

Statistics showed that availability for temporary jobs rose in the North of England in May, which KPMG said was the third rise in the past four months, while the rate of growth was its fastest in nine months.

Across the UK the supply for temporary and contract workers increased very slightly, whilst the supply for temporary workers in London and the Midlands fell, but increased in the South more generally.

KPMG also recorded a wage acceleration for permanent jobs in the North last month, which was the 15th monthly rise in a row, at its sharpest rate in over five years.

Nationally, however, the rate of salary growth was at a seven month low, in contrast to hourly wages which rose slightly across the UK.

Northern hourly wages were also on the rise for the ninth consecutive month, although this increase was only slight and at its slowest pace since November 2012

Kevin Green, chief executive of the Recruitment and Employment Confederation, commented: “This month’s data is a strong indicator that the jobs market, the unsung hero of the UK economy over the last 18 months, is picking up pace.

“Recruiters tell us that employers are more optimistic and are planning to increase their temporary and permanent hiring. This is supported by the expansion of job vacancies and a slight increase in starting salaries.

“The only cloud on the horizon is that the skills mismatch is becoming more pronounced. Employers are struggling to find the skilled candidates they need in sales, marketing and business development to prepare for the upturn in the UK economy, while the majority of the unemployed do not have the skills for the jobs that are available.”

This was posted in Bdaily's Members' News section by Miranda Dobson .