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Permanent salaries rise at fastest rate since July 2007

So it is an exciting time in the market place the REC anticipates 2014 being a year full of opportunity for the UK recruitment industry.

“The economy is growing with most economists predicting GDP being well above 2% some at 2.9%. The REC are forecasting that the UK recruitment market will see accelerating growth with the first quarter growing at about 7% followed by the market picking up to above 8% across the latter part of 2014.”

The Report on jobs conducted by the REC and KPMG found the following:

  • Faster increase in permanent salaries but temp pay growth eases
  •  Sharper decline in candidate availability
  • Growth of staff appointments eases but remains strong

Permanent salary growth accelerates
Starting salaries for people placed in permanent jobs increased strongly in March, with growth picking up to the sharpest since July 2007. However, temporary/contact staff pay increased at the slowest rate in five months.

Steeper decline in candidate availability
Recruitment consultants indicated further reductions in the availability of candidates in March. Permanent staff availability fell at the sharpest rate since October 2004, while the latest drop in temporary/contract staff availability was the fastest in almost 10 years.

Permanent and temporary appointments rise at slower rates
Rates of growth in both permanent and temporary staff appointments eased during March, but remained strong overall.

Further marked increase in vacancies
Demand for staff continued to rise at a marked pace in March, with the rate of expansion only just shy of January’s 15½-year high.

Regional and sector variation

  • Marked increases in permanent placements were recorded in each of the four English regions monitored by the survey, with the strongest growth indicated in the North.
  • The Midlands led a broad-based upturn in short-term staff billings in March. The slowest growth was recorded in the North.
  • Private sector demand for staff remained stronger than that in the public sector during March. The fastest growth was signaled for private sector permanent roles, although private sector temporary vacancies also recorded a strong rise.

Co-Founder and Director of Paramount Recruitment Eugene Mc Daid comments:

“The fact that there is such predicted growth in the recruitment market is encouraging, but it will become increasingly difficult to find highly skilled candidates to satisfy demand. The need for quality driven niche recruitment companies who have a great understanding of the market place and talent pools will rise. Those recruiters who have strong relationships and excellent reputations in their market place will rise above the competition and become valued partners to those clients who utilise a variety of resources to ensure they are able to attract the best candidates in the market.

As the demand for candidate’s rise it will create movement in the market and our recent candidate survey informs us that 82% of candidates will be considering a move in 2014.   This environment creates and exciting landscape for the job market and will test the skills of recruiters and in house teams in the race for top talent.

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14th April

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