Further Drop In Temp & Contractor Supply Propels Pay Rates In May
KPMG and the Recruitment and Employment Confederation (REC) have published their new Report on Jobs, providing data on the UK labour market in May. Not only did temp/contractor demand rise at a robust pace but the persistent decline in candidate availability resulted in the fastest hourly pay growth since December 2007.
this shortage of suitable candidates led to the impressive growth rate for hourly pay rates
Although the situation was not as bad as in April, staff availability in the temp/contractor category did register another significant decline in May. It was only marginally smaller compared to the slide recorded in April, when KPMG and the REC put the drop at its steepest in 13 years. On the other hand, this shortage of suitable candidates led to the impressive growth rate for hourly pay rates.
In terms of placements, the increase in May was also substantial. It should be noted, however, that there was a low base for comparison: April delivered the weakest temp/contractor billings in ten months. The most pronounced growth rate was recorded in the Midlands, with the South finishing second in the regional ranking. Temp billings also increased at a healthy pace in London and the North.
Blue Collar was the job category that enjoyed the strongest demand in the temp/contract market during May. Engineers were the second most sought-after professionals, while nursing/medical/care temps brought up the rear in terms of employer demand.
The UK labour market continues to experience robust growth as companies embark on a recruitment drive to cope with rising demand, REC chief executive Kevin Green commented. However, finding the right talent and skills remains a top concern for employers even though 2.2 million Britons are estimated to be unemployed, Green added.