MNI DATA: UK Staff Appointments Pick Up in October: REC

--UK October Permanent Placements 57.4 v 56.0 Sep: Markit/REC

By Jamie Satchi

     LONDON (MNI) - Staff appointments hit a higher gear in October as firms

continued to hire new staff at near-record rates despite ongoing Brexit

uncertainty, the Markit/REC Report on Jobs survey released Thursday showed. 

     --FIRMS' HIRING INTENSIFIES 

     Permanent staff placements rose to 57.4 in October, recouping the bulk of

September's 1.6-point loss, the second-fastest pace since March. 

     That extended the run of increasing permanent appointments to 27 straight

months. 

     Temporary billings also rose on the month, up to 58.3 from 55.9, the

highest reading since May.

     "Whilst Brexit may be dampening overall business investment, firms continue

to hire new staff at near record rates," said James Stewart, Vice Chair at KPMG.

     --VACANCIES REMAIN ELEVATED

     Coupled with more hires, vacancies remained at historically elevated levels

- despite the survey's measure of worker demand slipping to a near-two-year low.

     The job vacancies index slipped 0.2pp to 60.3 in October, with slight

declines across both the permanent (down 0.2 points to 64.3) and temporary (down

a tenth to 59.3) vacancies measures. 

     "With the jobs market so heated, businesses across the country, of all

types, are struggling to find work-ready staff. Particular pinch points include

IT, engineering, nursing and care staff," said Stewart.

     "Some clients tell us they are seeing the worst period of staff

availability for 20 years. A four-decade low in unemployment and a dwindling

supply of EU workers means good candidates are at a premium," he added. 

     --SALARIES CONTINUE TO RISE

     Starting salaries continued to increase last month, with the rate of

inflation broadly unchanged from September's 41-month record. 

     The Permanent salaries index slipped a fifth of a point to 64.3 in October.

     Hourly pay rates for temporary staff also increased markedly in October,

despite the pace of growth falling to the weakest since March. The index

moderated from 58.8 in September to 57.4.

     --SKILLS MISMATCH 

     By sector, IT and computing and engineering registered the steepest

increases in demand, while the weakest (although still considerably high) rise

was seen for construction staff.

     In terms of temporary staff, nursing/medical/care topped the rankings in

terms of demand for temporary workers at the start of Q4.

     "Skills shortages are a long-standing feature of our economy. They affect

the ability of employers to grow and create jobs," said Neil Carberry, Chief

Executive at the REC. 

     "That we have shortages in key skilled roles like IT, engineering and

health is a sign that the right training and support is not in place for people

to progress into these jobs from lower skilled work," he added.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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

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