Review of the UK Jobs Market – May
Welcome to our Review of the UK Jobs Market for May 2022. Each month, we share market insight on the state of the UK jobs market.
You can either read our short blog, or see our infographic.
Hiring activity growth softens further in May
The main findings were:
- Slower increases in permanent placements and temp billings
- Downturn in candidate supply eases only slightly
- Pay pressures remain historically sharp
Permanent placement growth moderates further in May
The number of permanent staff appointments across the UK continued to increase in May. Though sharp, the rate of growth was the joint-softest seen over the current 15-month sequence of expansion.
Temp billings expand at softest rate in 15 months
The rate of expansion has slipped to a 15-month low, but still remains historically sharp overall. Robust demand for staff and greater efforts to fill vacancies are driving demand, although a lack of suitable candidates has dampened the upturn.
Overall vacancies expand sharply
Demand for staff continued to rise at a historically sharp pace in May. Borken down by job type, permanent vacancies continued to expand at a quicker rate than that seen for temporary staff. Notably, demand for short-term staff increased at the softest pace for five months.
Overall the number of roles hit a fresh record high of 1,295,000 which was up form 1,288,000 in the three months to March.
Candidate availability continues to fall rapidly
A further marked deterioration in overall candidate supply was seen in May. This was despite the rate of reduction easing to the softest in four months. Underlying data indicated that permanent candidates continued to decline at a faster pace than that seen for temporary workers. Moreover, the latest reduction in short- term staff supply was the least severe for just over a year. Greater caution around the outlook, widespread skills shortages and fewer foreign workers has weighed on staff availability.
Starting salaries continue to rise rapidly in May
Salaries awarded to permanent new joiners rose for the fifteenth successive month in May. The rate of inflation remained rapid, despite edging down to a four-month low. Higher pay is linked to greater competition for scarce workers.
Softest increase in temp pay for 11 months
Though sharp, the rate of growth eased to the softest for nearly a year. Candidate shortages and strong demand for staff are the key drivers of temporary wage inflation. The South of England was the only region to note a quicker rise in temp pay.
Source: KPMG and REC UK Report on Jobs 13 June 2022
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