Yey – a Job Boom! Wait a minute….

Yey – a Job Boom!  Wait a minute….

Despite the upturn, employers are finding it difficult to recruit for permanent positions due to more candidates favouring temp/contract work … and as a result, they are having to offer increased salaries.

What’s the word in business?

The Recruitment and Employment Confederation (REC) and KPMG statistics—up to date guide to the UK labour market—Key Points: June 2014—permanent staff shortage ‘rate of contraction accelerated to the sharpest seen since 1997’,  also—availability of contract staff steeply deteriorated too; worst in June this year since 1998. The June Survey: What this means?

  • For 26 months in succession, salaries have been on the rise.
  • Contract pay rates recently risen more sharply than since 2007.
  • Placements on the rise.
  • Top of the Regions for Permanent Placements: Midlands, followed by southern areas of the UK.
  • However, the North are increasing their temp posts.

 What does REC CEO, Kevin Green think? ‘Record growth in starting salaries’ however… ‘the number of workers available to fill vacancies [in June] plummeted to an all-time low’ So, what does Mr Green suggest? Since the market is currently candidate driven, businesses must act and sharpen their hiring procedures.

Note: candidate driven market—Carpe Diem!

Bernard Brown, Partner and Head of Business Services at KPMG agrees: Despite record breaking starting salaries, ‘candidates are not easily swayed’.  However—take precaution—this large starting salary bubble cannot last, warns Mr Brown. A YouGov survey of 4,234 adults found

  • 10% have been freelance
  •  10% have been a contractor
  •  24% have been a temp
  •  40% who now earn >£30,000pa, have worked as a freelancer, contractor or agency worker
  •  22% who now earn >£50,000 have been agency workers
  •  36% who now have hiring responsibilities have been an agency worker

While JobsOutlook said that…

  •  78% of employers plan to recruit more permanent staff over the next 4-12 months
  •  87% of employers plan to recruit more permanent staff in the last quarter
  •  47% of employers plan to recruit more agency staff in the last quarter
  •  42% of employers plan to recruit more agency staff over the next 4-12 months

What does it mean for me?

Back to Kevin Green, the REC CEO: It’s not ALL about the money… Your talent can be rewarded in many ways, do you ever think about asking for…

  • Flexible hours?
  • Great benefits package?
  • Nice environment to work in?

Last word from the Office of National Statistics: quarterly GDP, 2003-2014.

  • GDP in 2003—£340bn
  • GDP in 2008—£390bn
  • Big dip in 2008-2009…
  • GDP in 2014, Q2—£395.5bn

Even the IMF are saying the UK is set to expand by 3.2% this coming year—having predicted 2.8%

It’s looking good out there!

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