Key employment trends including Accountancy sector jobs increase ahead of other sectors

As recently published by the REC, some interesting information emerged about the current job market and in particular for the Accountancy sector, candidates looking for their next job and for employers looking to recruit.

The key takeaways were: –

• Permanent placements rise at weakest pace for five months…
• Growth in temporary billings levelled off slightly
• Lack of qualified Candidates fuels wage rises

Summary:
The recently publishesd IHS Markit/REC Report on Jobs, provides the most exhaustive snapshot of the UK’s labour market, using real data from Recruitment businesses nationally. Snippets from the report follow below: –

“Permanent placements growth weakens to five-month low…

Permanent staff placements rose at the softest pace since April at the end of the third quarter. That said, the rate of growth remained marked overall. Temp billings meanwhile rose sharply, despite also seeing pace of expansion moderate from the previous month.

…as availability of candidates continues to fall sharply

A key factor weighing on growth in staff appointments was a further steep decline in candidate availability. For permanent candidates, the latest fall was the sharpest for four months, while the availability of temporary workers also fell at a historically marked pace.

Further steep increase in demand for staff.

The number of job vacancies across the UK continued to rise sharply during September, with growth of staff demand edging down only slightly from August’s recent peak.

Pay pressures remain sharp.
Strong demand for staff and a further drop in candidate availability placed further upward pressure on pay during September. Permanent starting salaries rose at the second-steepest rate in 22 months (after August), while temp pay growth softened only slightly from August’s 16-month record.

Regional variation
On a regional basis, growth of permanent placements was the most marked in the Midlands and the South of England. London meanwhile signalled a renewed drop in permanent placements (albeit marginal).
The quickest rate of temp billings growth was seen in Scotland, closely followed by the North of England. The weakest upturn was registered in London.

Sector variation

Latest data signalled that demand growth remained considerably stronger in the private sector than the public sector.
The sharpest overall increase in demand for staff was recorded for permanent workers in the private sector, while the weakest rise in staff vacancies was seen for permanent public sector workers.

Accounting/Financial was the most sought-after category for permanent staff in September, followed by IT & Computing. The slowest (albeit still marked) increase in vacancies was reported for Construction.  

Blue Collar achieved first place in the rankings for temporary/contract staff demand during September, while Nursing/Medical/Care scored second place. All remaining categories also saw steep increases in demand.

Kevin Green, REC Chief Executive, says:
“Recruiters are finding it even harder to find people to fill vacancies. Candidate availability has been falling for the past four years and the record high UK employment rate plus a slowdown in the number of EU nationals coming to work here is exacerbating the situation, potentially leaving roles unfilled. 
“Across the UK permanent placements are slowing, but London is faring worse with placements declining for the first time in eleven months and the financial sector in particular struggling to recruit for roles such as audit, payroll and risk. 
  
“Low-skill roles are also hard to fill in areas like food processing, warehouses and catering – sectors that employ a higher proportion of people from the EU than others across the economy. We urge the government to ensure any new immigration system includes provisions for low-skilled and temporary workers so that warehouses, supermarkets and restaurants can access the people they desperately need.”