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January Report on the Job Market

06 February 2015

The key findings from the January KPMG report into the labour market (which we are proud to contribute to) shows that permanent and temporary appointments continue to rise, but the rate of growth is slowing. Vacancies are increasing at a stronger pace and the rate of decline in candidate availability has moderated.

 They say good news comes in threes and it certainly seems to be the case for the UK economy. The past month has seen a rise in employment, a jump in the number of jobs being created and a growing number of firms prepared to pay more to land the best staff.

However, the good news is only half the story. Starting salaries may be continuing to rise for the jobs being created today, but this is unsustainable over the long term. Employers will reach a point where they cannot afford to keep throwing money at candidates, no matter how much their skills are in demand. We are some way off this happening, but if it does, candidates who are in demand today might find it harder to knock doors down tomorrow.