MNI: Candidate Shortages Slows June Staff Appointments: REC

--UK May Permanent Placements 55.7 v 57.1 May: Markit/REC

By Jai Lakhani

     LONDON (MNI) - Recruitment agencies registered a slower rise in staff

appointments in June, a survey released Friday shows. The rate of expansion in

permanent staff placements and temporary billings eased to eight and three-month

lows respectively. However, both continued to rise albeit not as sharply as in

previous months, the Markit/REC survey showed. 

     The effect was seen more notably on temporary billings which, after a

strong May, fell to 55.9 from 58.9. This was also the weakest index reading

since March. 

     The number of people placed into permanent jobs continued to rise markedly

in June, although at the slowest pace seen this year. However, the reading means

permanent staff appointments have now risen for the past 23 months. 

     --INCREASE IN STAFF VACANCIES STEEPENED

     Growth of demand for permanent staff edged up to a seven-month high, while

short-term vacancies rose at a slower but still strong rate. According to

anecdotal evidence, candidate availability deteriorated at a steeper pace.

Putting these two factors together inevitably contributed to the hampering of

growth in staff appointments. 

     --STARTING SALARIES PICK-UP

     Whilst staff appointments retreated a little, there appeared to be not let

up on pay pressures which remained historically marked. The rate of inflation in

permanent salaries held close to a three-year high. Furthermore, temporary

contract rates of pay also rose sharply, with the rate of group similar to

April's two-year peak. Permanent salaries were at 61.8 in June, down from 63.4

in May but still very firm. Temporary billings exhibited a similar pattern with

a June reading of 59.4, down from May's 59.6 

     The Markit/REC survey notes that the rates of reduction in candidate

availability for both permanent and temporary roles. The availability of

permanent workers was down to its lowest rate of deterioration for five months,

hence explaining the Markit/REC permanent staff availability index, published

Friday, falling to 36.4 from May's 37.0 figure. 

     Candidate availability in temporary roles was more pronounced with the pace

of contraction the steepest in seven months. The index figure fell to 40.9 from

May's 41.1 reading. This evidently highlights continued skill shortages in both

permanent and temporary candidates. 

     As Neil Carberry, REC Chief Executive mentions "It's a great time for

people looking to take the next step in their careers, as employers compete for

new staff in a tight market. It's a candidate's market out there."

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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