There has also been a fall in the number of people claiming Jobseeker’s Allowance, down 13,700 between March and April 2012. Following a revision to the figures published last month, there was also a fall of 5,400 between February and March. This is despite welfare reforms such as Incapacity Benefit reassessment that are leading to more people who previously claimed other benefits moving onto JSA.

Today’s figures also show signs of improvement in youth unemployment. The number of 16 to 24-year-olds who have left full-time education and are seeking work is now 707,000, down 24,000 on the quarter. The number of full-time students looking for a job is 314,000. This comes at the same time as the Department for Work and Pensions releases figures showing almost 50,000 18 to 24 year olds have undertaken a work experience placement since January 2011.

Employment Minister Chris Grayling said:

“These figures are a welcome step in the right direction. For a number of months now employment has been growing and this is starting to feed through into improving unemployment figures. However, we still face significant international uncertainty so we need to hold firm on our current economic strategy and continue to do everything we can to ensure unemployment continues to fall.”

Kevin Green, chief executive of the Recruitment & Employment Confederation, comments on the latest ONS employment figures:

“Today’s decrease in unemployment is good news and fits in with our data that shows employers intend to increase their numbers of both permanent and temporary staff over the course of the next year.

“There is employer confidence but it remains fragile with further bad news about the Eurozone risks denting that confidence. We expect to see further volatility in the jobs market in 2012 but flexible working continues to provide opportunities for both jobseekers and employers.

“An additional 118,000 people have entered the labour market in the last quarter, thanks to part-time working options. Part-time work should not be considered as ‘second class’ and many people working part-time are doing so out of choice. It may not be ideal for everyone but it is much better than the alternative of unemployment and benefits. We want as many people contributing to the economy and keeping their skills fresh. Taking on a part-time job can also be a stepping stone to a full-time position that jobseekers really want.

“Workers are increasingly asking their bosses for greater flexibility and we expect this to be a continuing trend in the UK labour market.”

Kevin was defending the recruitment industry from attacks that we are being “sneaky” and using loopholes and explained how the Swedish Derogation has real benefits such us payment between assignments and permanent employment.

What’s your view on the matter? Comments below please!

JobsOutlook’s survey of employers reports that:

• 72 percent said they planned to increase the number of permanent employees over the next 3 months
• 69 percent expect to increase permanent hires over the next year
• 34 percent plan to increase agency worker numbers in the next quarter (with 44 percent saying they plan to keep numbers the same)
• 29 percent say they will increase agency workers over the next 12 months (with 55 percent saying they will maintain their current numbers)

The report also revealed employers continue to be pleased with the service they receive from recruitment agencies – with 91 percent rating themselves as satisfied.

Commenting on the latest figures, the Recruitment and Employment Confederation’s Director of Research, Roger Tweedy, said:

“The overall figures from quarter one are really positive. Looking forward, employers tell us they plan to make more job offers over both the short and medium term – particularly for permanent roles.

“Our measure of employer confidence has reached a record high point. But the growth in confidence was less than last month so it will be important to track whether increasing employer confidence is a continuing trend or whether it’s peaking.”

Commenting on the latest labour market statistics (released 18 April 2012) by the Office for National Statistics that show overall unemployment is down by 35k on the last quarter and also that the number of people working part-time has increased, the Recruitment and Employment Confederation chief executive Kevin Green says:

“It is good news that more people are finding work and it fits with our monthly data that shows employer demand for permanent staff is at an eight month high.

“The increase in people working part-time is a good thing. Most people working part-time are doing so out of choice. For those seeking full-time work the alternative to taking a part-time role is to be unemployed and on benefits, not contributing to the economy and not keeping their skills fresh. Taking on a part-time job can be a stepping stone to landing the full-time position they want.

“Part-time work and flexible hours provide a means for many women to return to work after having children. Mothers, carers and men and women who need to fit work around other commitments in their lives are increasingly asking bosses for greater flexibility in their hours. We believe this is going to be a continuing trend in the UK labour market.”

The Tier 2  (‘work permit’) limit will stay at 20,700 through 2013/2014, as per the recommendation of the Migration Advisory Committee (MAC), based on evidence from over 130 organisations, including the REC.

The Resident Labour Market Test requirements have also been amended to reduce the burden on employers. For example, jobs offering a salary of £70,000 or more, or requiring PhD level skills will no longer need to be advertised via JobCentre plus, but can instead be advertised elsewhere.

The criteria for a Tier 2 visa will now require a raised minimum skill level of NQF level 6, typically equivalent to a bachelor’s degree, although there will be exceptions for jobs in shortage occupations and the creative sector.

Commenting on the latest announcements, REC Head of Policy Gillian Econopouly said,

‘Whilst we remain opposed to the immigration cap in principle, it is good news that the Government has heard the concerns of business loud and clear and avoided further tightening the cap for the next two years.

‘Although the total cap limit was not reached in 2011/2012, as the economy recovers, businesses will need to access specialist talent from overseas more than ever. The ability to bring in highly-skilled workers is critical to the creation of jobs and growth for our domestic labour market.’

“Anything that encourages business to recruit has to be good news. However, the changes will not unleash a ‘hire and fire’ frenzy. Employers want to recruit and retain good staff, anything else is costly and a waste of time and effort”.

“Demand is starting to return to the labour market, but many employers remain cautious. More needs to be done to crank up the UK’s jobs machine, addressing red-tape concerns is part of this”.

“Government is right to make jobs and growth the priority. Reverting to dismissal rights only kicking in after two years will not have the dramatic impact on workers that some are predicting”.

In recent times the UK’s economy has 190 million working days per Year due to sickness absence, with the average cost being £700 per employee per day.

Our workshop includes:

• The legal principals associated with absences

• How to dismiss fairly, for reasons of absence

• The different processes used for ad-hoc and long term illness

• How to identify a ‘disabled’ person used the legal definition

• How to manage a disabled employees absence

• An informed discussion with Agility’s employment law experts

This workshop is ideal for anyone who has responsibility for staff management, managing absence and improving attendance at work, from Managers, HR Officers to Business Directors.

Training line managers in absence management pays dividends with most employers seeing absence rates cut as a result of up-skilling in this area.

Workshop Details:

• Venue: Agility UK, Saxon Business Park, Bromsgrove, B60 4AD

• Date: Wednesday 25th April 2012

• Timings: 9am Arrival for 9:30am Start and 11:30am Finish

• Cost: Free

Book your places today by contacting:

Tina White
twhite@e-responserecruitment.co.uk
01527 66688
eResponse Recruitment, 9-13 Unicorn Hill, Redditch, B97 4QR

eResponse are providers of specialist recruitment and flexible staff management services across industry and commerce to the Worcestershire and South Birmingham markets.

Founded in 2003 eResponse are based from centralised recruitment centres in Redditch and Worcester and place several thousand people out to work every Year.

Renouned for a no quible quality comes first service, we partner with other local specialists like Agility to provide complete solutions to employers who need support growing, managing and developing their team.

This is a rise of 1.8% from the current level, which is lower than the current inflation rate.

The minimum wage for workers aged under 21 will be unchanged – a decision that has been criticised by union leaders.

The minimum wage was introduced in 1999 at £3.60 an hour for adults. The level is recommended each year by the Low Pay Commission.

The changes to be made in October echo the recommendations made by the commission.

‘Balance’

The cost of living rose by 3.6% in the year to January, according to the most recent Consumer Prices Index (CPI) measure of inflation.

However, October’s rise in the minimum wage is much more in line with the average increase in earnings, which rose by 1.4% over the year to January, the latest official statistics show.

The freeze in the minimum wage for those aged under 21 means that from 1 October:

• The rate for 18 to 20-year-olds will remain at £4.98 an hour

• The rate for 16 and 17-year-olds will remain at £3.68 an hour

• However, the rate for apprentices will rise by 5p to £2.65 an hour

Business Secretary Vince Cable said that the decision marked the “right balance between pay and jobs”.

“In these tough times freezing the youth rates has been a very hard decision – but raising the youth rates would have been of little value to young people if it meant it was harder for them to get a job in the long run,” he said.

However, TUC general secretary Brendan Barber said the minimum wage should have kept pace with inflation.

“It is wrong to deny young people an increase this year, as there is no evidence that the minimum wage has had an adverse impact on jobs,” he said.

“The reason why firms have not been hiring enough new workers is because they lack confidence in this government’s ability to set the UK on course for a sound economic recovery. There is now a real danger that young people will view minimum wage work as exploitative.”

David Norgrove, who chaired the Low Pay Commission’s discussions, said the decision was unanimous, despite all the economic uncertainties and the different pressures on low-paid workers and businesses.

John Longworth, director general of the British Chambers of Commerce, said the employers’ organisation was “disappointed” with the decision to raise the minimum wage.

“While the pressures of inflation are hurting many people, especially the lowest-paid, this decision adds significantly to the cost of doing business, and feeds wage inflation at higher levels,” he said.

Key points of the Report are:

• Stronger rise in permanent placements but temp billings fall

• IT & Computing and Engineering/Construction staff most in-demand

• Permanent salaries fall for first time since October 2009

• Temp pay rises at fastest rate in four months

Overall demand for staff rose at the fastest pace in four months during February, as a sharper increase in permanent vacancies offset a slower expansion of temp vacancies. Sector data showed that IT & Computing was the most in-demand permanent staff type, while Engineering/Construction was the most sought-after temp category. 

The availability of candidates to fill job vacancies rose further in February, albeit at a weaker pace. For both permanent and temporary staff, rates of growth were the slowest in three months.  

Recruitment consultants reported a drop in permanent staff salaries during February for the first time since October 2009. In contrast, temp staff pay rates increased at the fastest pace in four months.   

Kevin Green, Chief Executive of the REC, says:

“The labour market is clearly improving as this month’s Report on Jobs shows the strongest performance on permanent placements for nine months. Demand for staff also rose at the fastest pace for four months, so jobseekers should take heart that there are vacancies out there. Slowly, private sector employers are becoming more confident as the gloom, caused by a slowing economy late last year and fears about the Eurozone, recedes.

“The temporary market has shown a slight decline since January and is essentially flat at present. However, agency work continues to provide an important outlet for employers and jobseekers with over a million temporary workers placed on assignments in any given week.

“We are seeing high demand in professional roles such as IT, engineering, legal and HR and chefs continue to be in demand within the hospitality sector. The other sector which seems buoyant is nursing, medical and care. We believe this is because NHS trusts are recognising that using high quality temporary staff when they are needed is a cost effective solution to maintaining a quality service when budgets are being squeezed.

“Looking ahead, we anticipate that unemployment will continue to worsen slightly over the next few months. However,  with these early indicators of the private sector starting to hire again, the labour market is likely to bounce back towards the end of this year and on into early 2013.”

Bernard Brown, Partner and Head of Business Services at KPMG comments:

“The latest report raises hopes of a Spring revival in the jobs market with a second successive monthly rise in the number of people securing permanent roles and the data also indicating that February saw the rate of growth accelerating to a nine-month high.  Put alongside recent news from the ONS which suggested that the last unemployment figures represented the smallest rise in almost a year and there may be signs that the market is displaying early signs of recovery.

“Yet cautious optimism must remain the watchwords because the picture is not as rosy for temporary positions.  Of course, the reduction in contract placements may yet be related to the Agency Workers regulations, but without buoyancy in both the permanent and temporary markets it is still too early to unfurl the bunting.

“For those who have found new employment, we are also seeing rates for wages reducing for the first time since 2009, with a real prospect of continued downward pressure as the year goes on.  Given the ongoing squeeze many are feeling as costs go up on the high street, it appears that the price of permanent employment is lower take-home pay, but this is an inevitable consequence of a competitive, yet still fractious, market.”

Growth of permanent staff placements was recorded for the second month running in February and at the strongest pace since last May., according to the REC/KPMG Report on Jobs published today. Agencies’ temporary/contract staff billings, however, fell slightly for the third month running.

Key points of the Report are:

• Stronger rise in permanent placements but temp billings fall

• IT & Computing and Engineering/Construction staff most in-demand

• Permanent salaries fall for first time since October 2009

• Temp pay rises at fastest rate in four months

Overall demand for staff rose at the fastest pace in four months during February, as a sharper increase in permanent vacancies offset a slower expansion of temp vacancies. Sector data showed that IT & Computing was the most in-demand permanent staff type, while Engineering/Construction was the most sought-after temp category.

The availability of candidates to fill job vacancies rose further in February, albeit at a weaker pace. For both permanent and temporary staff, rates of growth were the slowest in three months.

Recruitment consultants reported a drop in permanent staff salaries during February for the first time since October 2009. In contrast, temp staff pay rates increased at the fastest pace in four months.

Paul Alekna, Managing Director of eResponse comments:

We continue to see an increase in demand throughout Worcestershire for sought after skills with a particular emphasis on Engineering and Professional Business Service appointments.

Our sales continue to rise and are currently up over 37% year on year which is driven primarly through business reacting to continued client demands and service expansion.

Both our Redditch and Worcester branches have seen a sharp increase in new vacancy instructions, again these are up over 55% versus the same period during 2010.

Kevin Green, Chief Executive of the REC, says:

“The labour market is clearly improving as this month’s Report on Jobs shows the strongest performance on permanent placements for nine months. Demand for staff also rose at the fastest pace for four months, so jobseekers should take heart that there are vacancies out there. Slowly, private sector employers are becoming more confident as the gloom, caused by a slowing economy late last year and fears about the Eurozone, recedes.

“The temporary market has shown a slight decline since January and is essentially flat at present. However, agency work continues to provide an important outlet for employers and jobseekers with over a million temporary workers placed on assignments in any given week.

“We are seeing high demand in professional roles such as IT, engineering, legal and HR and chefs continue to be in demand within the hospitality sector. The other sector which seems buoyant is nursing, medical and care. We believe this is because NHS trusts are recognising that using high quality temporary staff when they are needed is a cost effective solution to maintaining a quality service when budgets are being squeezed.

“Looking ahead, we anticipate that unemployment will continue to worsen slightly over the next few months. However,  with these early indicators of the private sector starting to hire again, the labour market is likely to bounce back towards the end of this year and on into early 2013.”

Bernard Brown, Partner and Head of Business Services at KPMG comments:

“The latest report raises hopes of a Spring revival in the jobs market with a second successive monthly rise in the number of people securing permanent roles and the data also indicating that February saw the rate of growth accelerating to a nine-month high.  Put alongside recent news from the ONS which suggested that the last unemployment figures represented the smallest rise in almost a year and there may be signs that the market is displaying early signs of recovery.

“Yet cautious optimism must remain the watchwords because the picture is not as rosy for temporary positions.  Of course, the reduction in contract placements may yet be related to the Agency Workers regulations, but without buoyancy in both the permanent and temporary markets it is still too early to unfurl the bunting.

“For those who have found new employment, we are also seeing rates for wages reducing for the first time since 2009, with a real prospect of continued downward pressure as the year goes on.  Given the ongoing squeeze many are feeling as costs go up on the high street, it appears that the price of permanent employment is lower take-home pay, but this is an inevitable consequence of a competitive, yet still fractious, market.”