Overview
- The REC/KPMG July survey of about 400 recruitment agencies reported the permanent placements gauge rose to 50.0 from 49.1, ending a 45-month decline in permanent hires.
- Temporary vacancies rose for the first time in two years and temporary staff placements increased, while pay for new permanent hires hit a six-month high and pay for temps reached a 26-month high.
- Deeper strains remain because the pool of people seeking work has grown for 41 consecutive months and total vacancies have fallen for 22 months, and fewer than a quarter of firms expect to expand headcount.
- Recruiters and KPMG are urging Prime Minister Andy Burnham’s new government to ease employment costs and red tape so tentative signs translate into sustained recruitment and higher investment.
- The pickup in starting pay is being watched by the Bank of England and could push firms toward flexible short-term hiring, which may give some people quicker access to work but limit long-term job security and career progression.