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Report on Jobs shows permanent placements growth at nine-month high in February
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.
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.”
Feb placements on a 9-month high
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.”
Posted in Job News, Stats & Facts
Tagged Employers, Good News, Job Stats, Manufacturing, REC
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UK salaries on the up, jobs at two-year high
Job opportunities across the country rose more sharply in February than in January, with the Reed Job Index up 17 points, while salaries are back to the level of 23 months ago.
Reed’s report examines trends from over 8,000 UK recruiters, and gives a Job Index reading of 140, the highest since the Index began in December 2009.
The recruitment industry itself reached a score of 116, its highest ever, while engineering, construction, scientific and qualified accountancy also showed particular buoyancy.
The increase of salaries was largely due to rises in areas such as banking, consultancy, customer services, retail and training.
The North West of England and Northern Ireland showed the greatest month-on-month increases in the number of new jobs available.
Martin Warnes, managing director of reed.co.uk, comments:“Before we can talk about a return to growth, we would want to see job creation strengthening over the coming months.”
Posted in Job News
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The CIPD calls for end to row over ‘unpaid’ work experience
The Chartered Institute of Personnel and Development (CIPD) is warning that recent headlines, which associate voluntary unpaid work experience with slave labour, are in danger of discouraging employers from offering placements and denying young people a route into permanent employment.
Good quality work experience provides an invaluable way for young people to build key skills and gain a foothold in the labour market. It is also a way for young people to develop and display the right attitude and work ethic that will help them to secure permanent employment.
However, employers also have a responsibility to offer high quality work experience schemes that provide real opportunities for young people to increase their employability.
To this end, the CIPD and Jobcentre Plus published guidance in 2011, Work Experience Placements that Work, to help employers develop effective work experience schemes for 18 to 24 year olds that benefit both the young person and the employer.
The guidance highlights the benefits of work experience for individuals and employers alike, but that to achieve those benefits they must:
• Be personalised to support individual circumstances and aspirations
• Provide support and mentoring
• Place a strong emphasis on learning and skills development
• Give a positive insight into the working world.
Katerina Rüdiger, skills policy adviser at the CIPD, comments: “With youth unemployment in the UK at an all time high, we should be doing all we can to encourage employers to help young people, not deter them. In the current labour market, experience of the working world is the single most important aspect employers look for when recruiting, so without it young people struggle to get a job. Work experience is a proven way of giving young people a first step on the employment ladder; it enhances their employability by giving them insight and experience of the working world. Employers have responsibilities to provide good quality schemes that boost employability and young people need to commit to placements and attend regularly if they are to get any value out of them.”
Benefits of work experience for individuals:
• Work experience provides a positive experience of the working world, contributing to a positive work attitude and work readiness
• Work experience helps people to build their CVs and develop networks that can help with employment prospects in the future
• Work experience helps people to make more informed career choices
• Work experience for school pupils helps to improve access to higher education and helps to motivate pupils to improve their attainment at school.
Benefits of work experience for employers:
• Work experience can provide additional resources and new perspectives for specific projects (but should not replace jobs)
• Work experience helps organisations to develop talent and skills for the future
• Work experience gives employers an opportunity to support young people in the community and enhance their employer brand
• Work experience can provide management and mentoring opportunities for staff
Posted in Job News
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Employers missing a trick as one in three fail to see the motivational power of employee benefits
When it comes to employee benefits, UK employers are missing a trick, according to research by YouGov for Employee Benefits magazine. “Employers may not be able to afford the most expensive benefits in the current climate, but many are missing out on the opportunity to boost staff retention and benefit from employees who act as advocates for their business, by offering affordable employee benefits” said YouGov’s Dr Michael Wagstaff as he addressed delegates at the Employee Benefits Connect conference in London yesterday.
While YouGov’s research for Employee Benefits magazine confirms that just under half (48%) of employers recognise the link between staff retention and benefits, a significant proportion do not. In fact, one in 10 employers say there is no link between staffing and employee benefits, while 36% of employers either don’t know or have no feelings on the subject.
The YouGov research reveals that whilst most employees receive at least one benefit at their current job, some benefits are more widely available than others. The top three benefits received are: a pension of some kind (43%), free car parking (33%), and an annual bonus (25%).15% of employees receive discounts on their organisation’s own products.
However, the research also reveals that employee benefits aren’t simply about money, with many aimed at promoting health and welfare. 22% of employees take the opportunity of flexible working and 15% have private medical insurance, while 12% take up life assurance. 5% of employees benefit from health screening, 4% take up subsidised gym membership and 3% have access to counselling services.
In terms of benefits to business, YouGov’s exclusive research reveals that offering employee benefits can have an impact on costly areas such as recruitment and retention. More than one third of employees with no benefits say the lack of perks make them more inclined to leave their current employer, whereas one in three who do have benefits say it makes them more inclined to stay. 60% of those with three or more benefits can see themselves working for their current employer for the next five years, compared to just 35% of those who don’t receive any benefits.
Revealing which groups are most satisfied with their benefits package, employees receiving three or more benefits are the most satisfied (74%), followed by those working in financial services (64%), employees earning more than £50,000 per year (62%), employees of FTSE 100 companies (58%), those working in professional, scientific or technical sectors (56%), senior managers (51%), and workers in Scotland (51%). Despite receiving fewer benefits, more women (48%) than men are satisfied with the overall benefits package they receive. YouGov’s study also found that women who work part-time (53%) are more satisfied with their benefits than those who work full-time (46%). Greater take-up of flexible part-time working is the key reason for this disparity.
When it comes to which benefits are considered the most important by employees, pensions of any kind emerge as the top benefit, followed by receiving a bonus and then life assurance. Providing discounts on their own and other companies’ products is a relative newcomer to the benefits portfolio, but has quickly gained in importance. YouGov’s Wagstaff believes this is another area where employers have the opportunity to maximise their benefits budget, by selecting affordable but valued benefits.
“There is a clear business case for offering employee benefits to staff; they help to boost commitment, job satisfaction and performance. Understandably, many employers aren’t able to offer company cars or bonuses, but where they are missing a trick is in failing to recognise that there are more affordable benefits that influence happiness and commitment, such as discount schemes and financial advice. If you want highly motivated, engaged and committed staff, get a benefits programme.”
“Ultimately” says Wagstaff, “employee benefits and advocacy go hand in hand. We asked employees to sum up how they the felt about the benefits they received and three quarters – 76 per cent – said they were advocates for their employer’s organisation, products and services as a result. The fact is that the more benefits employees receive, the more likely they are to act as an advocate for the company. Employers can only benefit from that, yet 26 per cent of large employers say the level of benefits they offer will decline in the next 12 month.”
Win Yourself an iPod Shuffle!
We will be giving away an iPod Shuffle to a lucky person. If you want to get involved and be in with a chance of winning this prize all you have to do is ‘Like’ us on Facebook, ‘Like’ the competition picture and then click share! At the end of March we will chose one person at random who has done this and will be sending an iPod Shuffle their way! This is the picture you need to look out for…
Remember all you need to do is Like our Facebook page, find this picture, Like that too and then share it with your friends! How easy is that?! Here is the link to eResponse’s Facebook: http://www.facebook.com/eResponseRecruitment
Get Liking!!!
Redditch Branch Bake Off
Here at eResponse we love our food so last Friday the team had the food feast of ALL food feasts, the ultimate bake off! The diets went out the window and down the drain and it was calorie galore in the office.
The menu consisted of the following:
Lissa – Moroccan lamb hotpot
Tina – Chili con carne with Nachos
Deano – Home made pizza
Amy – Chicken drumsticks
James – “Home baked bread” (more like popping to Morrison’s and buying a loaf of tiger bread! We know your game Jim)
Trudy – Home made biscuits
Joe & Paul - Traditional Alekna cake
Dave – Home made Scones with Jam & Butter
It was a truly fattening day and although it wasn’t a competition, Dan from the Worcester Branch (who just happened to be there on the day there was so much food) was overheard saying that Dave’s scones were “simply the best food there”.
Good Work Guys and we look forward to the next one!
Over half of jobseekers apply for unsuitable roles
Three-fifths of jobseekers have applied for jobs they were knowingly unsuitable for, with the majority citing ‘desperation’ as the main reason why, according to a new study.
The study, conducted for the newly launched compliance software service for recruiters, www.NowWeComply.com, found that 63% of respondents said they had knowingly applied for roles for which they were unqualified.
The most common reason, among 47% of the respondents, was ‘desperation to find a job’, while a third (32%) simply explained that they were ‘aiming high’ with their application.
Respondents were also asked if they had ever exaggerated or fabricated aspects of their CV, such as experience, qualifications or interests, with more than half (58%) agreeing they had, with the most commonly exaggerated aspect being ‘experience’.
Ben Stoneham of NowWeComply.com says: “We all know that some people have a tendency to stretch the truth when it comes to their CV, especially in a tougher jobs market where competition is fierce.
“As a recruiter it’s one of the things you have to deal with day to day, but with the volume of candidates increasing, the problems that filtering through the fibs can cause are endless.”
Posted in Job News
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Employers offered wage subsidy for hiring young people
‘Take a chance on hiring a young person’ urges Grayling.
Ministers have urged employers to claim their share of a £1billion government wage subsidy to recruit up to 160,000 young people.
Deputy Prime Minister Nick Clegg and employment minister Chris Grayling announced today that the wage subsidy will be available through the government’s ‘Youth Contract’ for firms taking on young unemployed people from April this year.
Employers can collect up to £2,275 for every person aged 18-24 years old that they hire from the government’s Work Programme, to cover costs such as National Insurance.
Payments will be made once the young person has been employed for 26 weeks.
To help smaller businesses with their cash flow and make the jobs viable, the subsidy will be paid in two instalments, with the first payment after eight weeks and the rest after 26 weeks.
Part-time roles are also eligible for the incentive with the government offering £1,137.50 for someone employed for between 16 and 29 hours.
Clegg said: “This is a long-term boost to help business get young people into jobs before long-term damage is done. Employers have a huge part to play in this and the subsidy we’re announcing today benefits business and young people.”
The Deputy Prime Minister is writing to thousands of employers – from global corporations to small local firms – to urge them to look at what’s available through the scheme. He said that it aims to promote long-term opportunities for out of work young people.
Grayling said: “With the wage incentive we are encouraging employers to take a chance on a young person who otherwise may have been over looked for a lack of experience or skills.
“Over the three months since we announced the Youth Contract we have consulted with businesses large and small to develop a system that works for them.”
In addition, the Youth Contract which launched last November, plans to offer at least 20,000 incentive payments worth £1,500 each for employers to take on young people as apprentices.
Meanwhile, 250,000 work experience places will be created through the Department for Work and Pension’s work experience and sector-based work academies programmes.
Support for young jobseekers will also be provided by Jobcentre Plus in the form of weekly, rather than fortnightly, signing-on meetings, giving more time to talk to an adviser and take up a National Careers Service interview.
