13 Feb 2020

Market confidence is on the up and this has led to the first back-to-back rise in permanent positions for more than 12 months.

According to the latest KPMG/Recruitment and Employment Confederation’s (REC’s) ‘UK Report on Jobs’, UK recruiters saw a further rise in permanent positions in January this year following the general election.

December’s decisive election boosted business confidence and has been followed by the fastest rise of staff vacancies in the UK for 10 months, driven by a rising demand for permanent workers.

But while demand for permanent staff grew at the fastest rate since March last year, growth of demand for temporary staff remained unchanged from December, reports the Recruiter.

According to the KPMG survey, January also saw softer increases in starting pay for workers. However, looking at the data a bit closer reveals that this increase in permanent starting salaries was the slowest for three-and-a-half years. It’s a similar story with temporary salaries – inflation was among the softest since the latter months of 2016.

The number of permanent staff appointments rose in the North and South of England, but fell in London and the Midlands. After a rise in temporary staff appointments during December, this number fell in January in London and the South, while the Midlands and the North of England saw this growth maintained into the New Year.

Speaking about these findings, CEO of REC Neil Carberry said: “It’s good to see that businesses have grown in confidence over the past two months and taken the opportunity to restart hiring.”

He continued: “Permanent placements are up again, and demand for staff has risen at the quickest rate for ten months. This is good news for employers, recruiters and candidates.”

However, Carberry also highlighted the negative impact the upcoming changes to IR35 legislation (which will make companies, not the individual, responsible for assessing whether a contractor should be considered a full-time employee or not) will have on the availability and placement of temporary workers.

Legislation aside, if the growth in permanent positions continues to rise in 2020, competition for the top talent is going to be fierce. In order to attract candidates, businesses need to know what they are looking for in a permanent role.

According to Glassdoor’s Job and Hiring Trends for 2020 report, candidates are increasingly valuing company culture over cash. That means businesses need to place more focus on their employees, customers, suppliers and the communities in which they operate. Fluffy staff perks like free food and having your birthday off are no longer enough. Research shows that candidates are favouring companies with a clear mission, quality senior leadership and good career progression opportunities.  

Has your business got what it takes to attract the top marketing, digital and creative talent? At Stopgap, we are experts in placing great people in remarkable roles. Brief us on your resourcing needs now. 

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