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The Report on Jobs: London’s permanent placements at three-month high  

Growth of permanent placements in London has accelerated to a three-month high, according to a report carried out by professional services network, KPMG.

In The Report on Jobs: London, which contains original data from the survey of recruitment and employment consultants in the capital, KPMG reported that the amount of staff placed in permanent positions in London increased for the twenty-second consecutive month in March.

The rate of expansion accelerated to the sharpest since December 2014, although remained weaker than the UK average.

The firm found temp billings growth in the capital picked up to an eight-month high in March, with the pace of increase stronger than the UK-wide trend.

March data indicated that the rate of expansion in permanent placements across the UK was sustained at February’s marked pace.

March data pointed to the steepest expansion in demand for permanent staff in the capital since last October. In contrast, temporary vacancies rose more slowly in March. Although marked, growth rates in London remained less pronounced than across the UK as a whole.

Recruitment consultancies in London also reported an ongoing contraction in permanent staff supply in March.

Temp supply in London also fell at the quickest rate in three months during March. The pace of reduction was sharp and in line with the UK-wide trend, with roughly 31% of survey respondents noting lower temp supply during the month. The availability of short-term staff has now declined for 20 successive months.

Ingrid Waterfield, director of KPMG’s people powered performance practice, commented: “As growth in permanent placements at London firms is recorded for the twenty-second consecutive month, March’s data shows that the recovery of the capital’s job market is gaining momentum. In the run up to the general election, this should help shore up consumer confidence throughout the city,

“Yet there remains a supply side problem. According to the latest CBI/KPMG London Business Survey, nearly half of London’s businesses say there is a skills shortage amongst current employees. The lack of literacy and numeracy among candidates has been a persistent concern of businesses in London, and the city’s high rents and property values are driving eligible applicants away.

“Therefore London firms have been vying for skilled candidates, and as a result we have seen significant salary growth in areas of the market, such as the IT and engineering sectors. It is imperative for organisations to focus on their employer brand if they are to retain a competitive advantage - focussing on prevention as opposed to cure.

“Organisations need to attract new employees, but more importantly they need to ensure current employees understand why they work for the organisation and don’t consider leaving, to avoid the disruption and cost of having to recruit in the first place.”

This was posted in Bdaily's Members' News section by Ellen Forster .