MNI DATA: UK Permanent Hires Expand as Availability Falls: REC

--UK August Permanent Placements 57.6 v 55.4 Jul: Markit/REC

By Jai Lakhani

     LONDON (MNI) - UK recruitment agencies registered a faster pace of staff

appointments in August, with firms offering higher permanent starting salaries

to an increasingly smaller pool of candidates, the Markit/REC survey released

Wednesday showed. 

     Permanent staff placements rose to 57.6 -- the fastest pace since March --

extending the run of increasing permanent appointments to 26 consecutive months.

     Whilst temporary billings moderated to 55.3, the softest since October

2016, it still represents a strong reading which was unable to match July's pace

driven by the World Cup and the warmer weather. 

     --CANDIDATE SUPPLY DOWN

     Agencies reported that candidate shortages continued to weigh on staff

appointments. A number of panellists blamed this on the low unemployment rate.

The availability of permanent staff index and temporary/contract staff index

both posted marginal increases in August but both remained substantially below

the 50-neutral mark. 

     The availability of permanent staff index picked up to 37.4 in August, up

from 37.3 in July, while the availably of temporary staff index rose six points

to 42.5. 

     --VACANICES PICK UP

     Demand for staff increased in August, with overall job vacancies expanding

at a rate just below July's eight month high. Growth was seen in the public and

private sector but was driven predominantly by the private sector, with demand

for both permanent and temporary workers noting the fastest increase. 

     --STARTING PAY UP

     Average starting salaries awarded to newly-placed permanent staff rose to

the second-sharpest pace for over three years in August. Despite the softening

of the rate of inflation from previous months, short-term pay rates also

increased- highlighting strong demand for workers. The permanent salaries index

hit a three month high at 62.4 from 60.2 previously. Temporary pay rates,

meanwhile, fell to 58.1 from 59.7 in July, but still remain firmly above 50,

with July's reading of 59.7 close to April's two year high. 

     --BREXIT CHALLENGES 

     "Businesses are getting on with it driving Britain's growth- jobs are being

created and starting salaries are rising. There are big opportunities out there

for candidates right now looking for a new role. But for how long our labour

market can defy gravity if the shape of our future trading arrangements with the

EU remain unclear is the big question," said Neil Carberry, Chief Executive at

REC.

--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

[TOPICS: MABDS$,M$B$$$,M$E$$$]