London Labour Market 9th May 2012 | 09/05/2012
Report on Jobs: London
Contraction in permanent appointments fastest for almost three years
The Report on Jobs: London is a monthly publication produced by Markit and sponsored by the Recruitment and Employment Confederation and KPMG LLP.
The report features original survey data which provide the most up-to-date monthly picture of recruitment, employment, staff availability and employee earnings trends in London.
1 Staff appointments / Vacancies
2 Staff availability
3 Pay pressures
4 Regional comparisons
Key points from April survey:
• Permanent placements fall despite further rise in the number of permanent vacancies
• Temporary vacancies up for first time in nine months, though billings decline again
• Pay pressures weaken across the capital as wages and salaries fall
Report on Jobs: London | Recruitment Industry Survey
1 - Staff appointments / Vacancies
Recruitment consultancies report on the number of people placed in permanent jobs each month, and their revenues (billings) received from placing people in temporary or contract positions at employers.
April sees permanent placements fall faster
The overall number of staff placed in permanent jobs by recruitment consultancies in London decreased at a marked and accelerated rate in April, and one that was the sharpest since May 2009. This contrasted with a further (albeit slower) increase in placements across the UK as a whole.
Marginal dip in temp billings
Latest data showed a sixth straight monthly decrease in billings received from the employment of temporary staff in London. That said, the rate of contraction eased again in April to the weakest since last November, and was slower than the decrease seen at the UK level.
The demand for permanent staff in the capital increased for the second month in succession in April, with the rate of growth accelerating to the fastest since last July. Temporary vacancies in London also rose, ending an eight-month spell of contraction. In both cases, however, growth was weaker than the UK average.
2 - Staff availability
Recruitment consultants are asked to report whether availability of permanent and temporary staff has changed on the previous month.
The availability of permanent staff in London fell for a second straight month during April, while the number of candidates seeking temporary/contract work rose at a much slower rate.
Permanent staff availability down slightly
Permanent staff availability in London worsened for the second month in a row during April, though the rate of deterioration eased. The UK as whole saw a similarly marginal decrease in availability, ending a 14-month sequence of improvement.
Temp availability increases at reduced rate
The availability of candidates seeking temporary positions in London improved at a slower rate in April, with the seasonally adjusted index posting at its lowest level since last July. The rate of improvement at the UK level was again comparatively faster than in the capital, despite easing to an 11-month low.
3 - Pay pressures
The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as well as average hourly rates of pay for temp/contract staff.
Average starting salaries for permanent staff fell solidly in April, and at a rate that was unchanged since the previous survey period. The decrease was the third in as many months in London, and faster than the UK average.
Temp/contract pay rates
After rising in each of the previous two months, temporary pay rates across the capital fell slightly during April. Anecdotal evidence indicated that lower rates were a consequence of rising availability of candidates for temporary work. The decrease in the region contrasted with marginal temp pay inflation across the UK as a whole.
4 - Regional comparisons
The Report on Jobs: London is one of four regional reports tracking labour market trends across England. Data are also available for the South of England, the Midlands and the North of England.
Permanent placements in London dropped markedly in April, contrasting with growth in all other monitored regions. The capital also a saw a fall in temp billings, though the decrease was weaker than that recorded at the UK level.
The Midlands recorded the steepest rise in permanent placements, followed by the South of England. The Midlands also saw the strongest growth in temp billings. Elsewhere, a solid rise in temp billings in the North contrasted with marked and marginal declines in the South and London respectively.
London saw a marginal deterioration in permanent candidate availability during April that was in line with the UK average. The rate of improvement in temp availability in the capital was meanwhile slightly slower than that seen at the UK level.
Only in the North of England were candidates seeking permanent jobs more readily available, with the fastest decline reported in the South. In contrast, the number of candidates available for temporary work increased in all regions, led by the Midlands and the North of England.
Permanent salaries in London fell solidly during April, and at a faster rate than in the only other region to record a decline, the Midlands. Meanwhile, London was the only monitored region to see a decrease in pay rates for temporary/contract staff.
Starting salaries for permanent staff increased at similarly solid rates across the North and South of England, though this was offset by declines in both the Midlands and London. Meanwhile, the Midlands saw the strongest monthly inflation of temp pay rates, followed by the South and then the North.
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