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Every month, we share the latest labour market trends based on statistics from the ‘UK Report on Jobs’ by KPMG and Recruitment and Employment Confederation (REC) as well as our own first-hand experience from within our regions.
The report is compiled by S&G Global, based on a monthly questionnaire sent to a panel of approximately 400 UK recruitment and employment agencies – including ourselves.
Key Points
Candidate availability rose at the fastest rate since November 2020
Permanent placements fall at steepest rate for nearly two years
Slower growth in starting salaries and temp wages
Demand for workers (temp and perm) declines overall
Candidate Availability
The picture for June shows a rapid increase in candidate availability, which comes amid reports of redundancies and less demand for workers, in the biggest jump we’ve seen in 4.5 years.
Wage growth slows
Decreased demand and higher availability of candidates has slowed pay growth, whilst a modest increase was recorded for both temporary and permanent pay, it’s notably smaller than previous trends.
Temp and Perm Vacancies Decline
Permanent placements fell across all regions in England – particularly in the South, as did temporary vacancies – aside from a fractional rise in the Midlands.
Retail saw by far the steepest reduction in demand for permanent staff across the eight job categories that posted a decline. The only sectors to record an increase in permanent vacancies were Construction and Engineering, though upturns were only mild overall.
Six of the ten broad job sectors monitored by the survey registered lower demand for temporary workers in June. The sharpest drops were signalled for Retail and Secretarial/Clerical roles. Construction recorded the strongest growth, experiencing a renewed and solid increase in vacancies.
Summary
The market remains volatile as businesses balance economic and political uncertainty with opportunities for growth. Overall, temporary recruitment remains in favour over permanent hiring – which further evidences businesses still taking a more cautious approach.
However, if candidate availability continues to rise, halting salary increases and putting employers back in the driving seat, we may see permanent hires back on the agenda.
Construction and Engineering vacancies rise against the trends, with the Retail sector showing the biggest decline.