Report on Jobs
The June KPMG and REC monthly report on jobs has just been published and, as you might expect, the effects of the COVID-19 measures have continued to have a significant adverse impact on the market.
The Report provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour market trends.
They key headlines from the report are:
Permanent placements continue to fall sharply
The survey data indicated that hiring activity remained weak across the UK, as permanent placements and temporary worker billings both fell at the second-sharpest rates on record. Recruiters frequently mentioned that the coronavirus disease 2019 (COVID-19) pandemic had led clients to cancel or postpone recruitment plans until the outlook improved.
Candidate supply rises at fastest pace since mid-2009
Recruitment consultancies signalled the quickest expansion in overall candidate availability since July 2009 during May. The upturn was driven by steeper increases in the availability of both permanent and short-term staff. Panellists often linked higher candidate numbers to redundancies and staff being placed on furlough due to COVID-19.
Starting salaries drop at steeper rate
Permanent starter salaries fell for the second month running in May, and at the quickest rate since February 2009. Temporary Worker pay rate meanwhile declined at the fastest rate for 11 years. Recruiters often mentioned that weak demand for staff and budget cuts at clients had driven down pay in May.
Demand for staff declines further
Overall vacancies fell at a substantial pace in May, despite the rate of reduction easing from April's survey record. Marked drops in demand continued to be signalled for both permanent and temporary workers, with the former noting the steeper rate of contraction.
However, figures from May’s report also indicate that the worst could be behind us. While confidence in the economy remained at a record low, levels of confidence in hiring amongst Employer’s had improved by 11 percentage points. Whether this will lead to a V shaped recovery or a more gradual return to (the new) normal remains to be seen.
Meanwhile at Kelburn we remain on call to assist you with both Permanent and Temporary Worker requirements as and when you may need them and continue to offer a range of low cost recruitment solutions during the COVID-19 recovery period.