Review of the UK Jobs Market – May
Welcome to our Review of the UK Jobs Market for May. 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:
- May sees weaker decline in placements
- Further uplift in pay rates
- Staff vacancies down only slightly
- Staff availability rises to greatest degree since end of 2020
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Staff Appointments
Modest redution in permanent placements
Permanent placements in the UK fell again in May. That said, the rate of contraction was modest and the softest in over a year. Few ob openings, amid a lack of available roles, delayed hiring decisions and a lack of suitable candidates for some positions were all factors. However, there was a return to marginal growth in the Midlands.
Temp billings fall at slower pace
May saw a more modest fall in temp billings. Where there was a decline, this was linked to a mixture of reduced demand and candidates shortages for specific roles. Whilst London and the South recorded a drop in temp billings, in contrast, solid growth was seen in the Midlands and the North of England.
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Vacancies
Slower decline in staff demand
Latest data showed that permanent staff vacancies contined to fall in May, extending the current downturn to nine months. However the rate of contraction was marginal, and the weakest recorded since last October. Meanwhile, temp worker demand was unchanged in May following a three-month period of falling temp vacancies.
The latest figures from the ONS, indicated a drop in the number of cancaies in the three months to April 2024. According to the official statistics body, vacancies fell 26,000 compared to the three months to January, with the overall vacancies dropping to 898,000. This is still higher than just prior to the pandemic.
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Staff Availability
Staff availability rises to greatest degree since end of 2020
Permanent staff availability continued to improve during May, extending the current period of expansion to 15 months. Moreover, the rate of growth was the highest seen since the end of 2020. A mixture of redundancies, reduced demand and less vacancies had led to the latest rise in candidate availability.
The availability of temporary staff increased again in May in line with the trend since Match 2023. The rate of expansion was steep, though softened a little since April’s recent high. Redundancies and higher unemployment, alongside a general drop in demand for candidates, ad driven growth in temp candidate supply.
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Pay Pressures
Marked increase in starting salaries during May
Permanent starting salaries increased again in May, marking a thirty-ninth successive monthly upturn. The degree to which salaries rose was little changed on April’s four-month high. Wages continued to rise in line with broader inflationary pressures and the high cost of living. That plus the increase in national minimum wage.
Temp wage inflation remains high
Temporary pay continued to rise at a similarly marked pace to starting salaries during May. Wage inflation has now been registered in each month since March 2021. The inflationary impact of April’s national minimum wage, plus bolstering pay to attract high quality candidates were the main drivers for the growth.
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Source: KPMG and REC UK Report on Jobs 10th June 2024
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