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May Recruitment Survey Results

05 June 2015

Key points from the May recruitment survey are as follows:

  • Growth of permanent placements eases, but remains marked overall
  • Temp billings rise at faster pace
  • Permanent salary growth remains strong

The General Election probably distracted everyone during May. Always a good excuse for anything for which we want an excuse! At a senior level it is indeed possible that directors were considering the ramifications for their businesses. Let’s see what June brings.

Apparently temp staff placements continued to rise as did zero hours contracts for the 25thconsecutive month. Which may indicate that the way employers are taking on staff has changed forever. Difficult for us to comment as we rarely do temp staff.

Growth in the services sector continued to outpace that of manufacturing, with the former seeing a significantly stronger appetite for new employees to keep up with the volume of new orders coming in. Interestingly, from our point of view at Badger Associates, manufacturing in the Eastern Region continues to thrive. That could be a result of much of our manufacturing being of a specialist, niche nature.

Overall, at a national level, these statistics will add more weight to the fears that the economy is not rebalancing as hoped, and are a worrying reminder of the recovery’s reliance on the performance of the white collar service sector.

While elements of the private sector are thriving, the public sector continues to suffer, with pay growth rising by just 0.2% in the last reported quarter. This stagnation is in stark contrast with the pay awards seen in Britain’s businesses, whose staff saw average rises of 2.4%, driven by the booming service sector. With the Government’s continued focus on austerity, this imbalance is unlikely to be readdressed in the near future. From the selfish viewpoint of a representative of the recruitment industry, the fact that the public sector continues to have an inbuilt resistance to using our services means that their demise has little effect on our sector. 

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