Review of the UK Jobs Market – April

Review of the UK Jobs Market – April

Welcome to our Review of the UK Jobs Market for April. 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.

The main findings were:

  • Slower falls in permanent and temporary staff appointments
  • Pay rates improve in April
  • Slower falls in staff demand signalled
  • Fastest increase in staff availability since last November

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Staff Appointments

Permanent placements fall at noticeably slower rate in April

The number of staff appointed to permanent positions by UK recruitment consultants continued to decline during April. It was noted that there was heightened caution amongst clients with firms reportedly holding back on recruitment. A lack of suitable candidates to fulfil positions was also cited as a reason for lower placements.

Temp billings fall but at slowest pace in three months

For the sixth month running, temp billings declined in April. However, the rate of contraciton was the slowest since January. Those areas that registered a cut a temp numbers noted a lack of market demand and the non-renewal of temp contracts amid evidence of client budgetary constraints.

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Vacancies

Slower decline in staff demand

Permanent staff vacancies declined for an eigth month running in April. The rate of contraction was however modest and consintued to soften on February’s 37-month record. Demand for temporary workers meanwhile fell for the third month running but only marginally.

According to the latest figures from the ONS, the number of vacancies were down by 13,000 compared to the three months to December. That left the overall number of job vacancies at 916,000. Whilst over 200,000 down from a year ago, vacancy numbers remain some 120,000 higher than the pre-pandemic level of 796,000 posted in the three months to March 2020.

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Staff Availability

Fastest growth in candidate supply for five months

April signalled a stronger rise in permanent staff availability, with the rate of growth improving to its highest level for five months. A higher number of redundancies alongside a greater number of people looking for work bolstered permanent staff availability.

Temporary candidate numbers continued to increase in April, extending the current period of growth to 14th months. Moreover, the rate of expansion accelerated, reaching its highest level since December 2020. Anecdotal evidence suggested that reduced demand for staff, alongside increased volumes of redundancies, had led to the latest rise in candidate availability.

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Pay Pressures

Starting salaries rise at slowest rate for over three years

Latest data showed that permanent staff salaries continued to rise in March. However, the rate of increase was the lowest in the current sequence. Where pay was reported to have increased, it appears that companies were willing to bolster pay to attract and secure better quality candidates. An increase in the availability of workers did however serve to weigh on pay growth.

Temp wage inflation down to four-month low

Typical average pay rates for temp workers continued to rise in March, although the rate of inflation sank to its lowest level for four months. Temp pay was reported to have risen in line with greater demand for higher quality candidates and their limited supply. The strongest increase was again seen in the North of England.

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Source: KPMG and REC UK Report on Jobs 9th May 2024

Review April

Information, Intelligence, Trends 09 May 2024 Written by Marketing