A new report from KMPG and Recruitment & Employment Federation, as featured in Recruiter, reveals Brexit uncertainty is hitting hirers as growth in permanent jobs drops to lowest levels in two years, while temporary staff billings rose at a sharper rate.
Brexit uncertainty is hitting hirers’ plans to increase permanent headcount, according to the latest KMPG and Recruitment & Employment Confederation ‘Report on Jobs’. The report’s findings reveal agencies indicated a further marked decline in the availability of candidates at the end of 2018. The deterioration in permanent labour supply increased in the previous month, while short-term staff numbers fell at a less pronounced but still marked rate.
Candidates for permanent roles were hard to come by during December, with the rate of expansion of permanent staff appointments the softest seen in 20 months. This contrasted with temp billings, which rose at a sharper rate, up from November’s joint 25-month low.
Vacancies increased for both permanent and temporary roles across the UK at the end of 2018, with growth of demand for both types of worker much stronger than witnessed on average over the survey’s 21-year history.
As demand for workers generally outstripped supply, starting pay continued to rise sharply for both permanent and short-term workers in December. The rate of starting salary inflation was among the quickest seen for over three years, while temp pay growth also remained sharp by the survey’s standards.
Across the country, the South of England witnessed the sharpest increase in permanent staff appointments, while relatively mild expansions were seen across the remaining three English regions.
Meanwhile, all four monitored English regions registered marked increases in temp billings at the end of 2018, again led by the South of England.
Turning to sector disciplines, accounting & financial and engineering were the most in-demand categories for permanent staff at the end of 2018 – though marked increases in vacancies were also seen across all other monitored sectors.
While blue collar continued at the top of the rankings for temporary/contract staff demand during December, short-term vacancies rose across all of the other nine monitored categories. The least marked increase was seen for executive/professional staff.
What does this mean?
Economic uncertainty is having a profound impact on hiring plans – permanent jobs are at their lowest levels yet temporary placements are on the rise. For hirers, having access to a vast pool of temporary candidates has never been more important.
As Brexit fast approaches, the UK economy is potentially heading towards its biggest period of instability since the last recession and furthermore a shrinking world driven by online technology means that competition continues to increase.
This uncertain economic environment means that companies need to be able to react rapidly to changing circumstances. The good news is that the introduction of online temporary recruitment platforms is making this process easier, by bringing hirers, contractors and agencies together in one place.
TempRocket is a digital temporary staff recruitment platform that connects contractors, agencies and hirers 24/7 via an online booking dashboard, which can be tailored to individual needs and requirements. This makes the process for searching for and taking on temporary workers far more connected, efficient and cost-effective.
Contact us today to find out how TempRocket can help fulfil your temporary staffing needs, all at the click of a button!