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September 2016 Jobs Market Analysis

07 October 2016

Every month Badger Associates is asked to contribute to an important national review of the recruitment industry. We are proud to do so and to share the results with you just as soon as they are available. 

Permanent placements rise for second successive month...

September data showed a second straight monthly rise in permanent staff placement volumes, after the declines seen in June and July. Temporary/contract staff billings also rose, albeit at a slower pace compared with August’s three-month high. In both cases, rates of growth remained slight overall.

...supported by sharper increase in vacancies

Demand for staff continued to rise in September, with the pace of growth picking up to a three-month high. The strongest-performing category for permanent staff was Engineering, while Hotel & Catering workers were the most sought-after type of temp staff.

Candidate availability falls, but at slower rate

The availability of staff to fill permanent roles continued to fall in September. Although remaining marked, the rate of decline eased to the slowest in almost three years. Similarly, temporary/contract staff availability deteriorated at a weaker pace.

Temp pay growth slowest since May 2013

Average starting salaries for candidates placed in permanent jobs rose further in September. The rate of growth was similar to August’s solid pace. Temporary/contract staff pay however increased at the weakest rate in 40 months.

Latest data from the survey of recruitment consultants signalled modest increases in both permanent and temporary/contract staff appointments during September.

Permanent placements rise for second month running

The number of people placed in permanent jobs rose again in September, having returned to growth in August. That said, the rate of expansion remained marginal overall. Panellists, including Badger Associates, commented on rising client demand for staff, although skill shortages continued to be reported as a factor putting a brake on growth.

Permanent placements rose fastest in the Midlands during September. However, London saw a further reduction in volumes.

Growth of temp billings eases

Agencies’ billings from the employment of temporary/contract staff rose further during September. However, the rate of expansion moderated from August’s three-month high.

Growth of short-term staff billings was broad-based across the monitored English regions in the latest survey period, but Scotland saw a slight fall.