MNI: Permanent Hires Slow as Candidate Availability Falls: REC

--UK Jul Permanent Placements 55.4 v 55.7 Jun: Markit/REC

By Jamie Satchi

     LONDON (MNI) - Recruitment agencies registered a slower pace of staff

appointments in July as firms had an increasingly smaller pool of candidates to

choose from, the Markit/REC survey released Wednesday showed. 

     Permanent staff placements continued to rise in July, albeit at a slower

pace, and they eased 0.3 points to 55.4, a nine-month low. Permanent

appointments have now increased for the past 25 months. 

     Temporary billings also increased strongly, up 0.9 points to 56.8, having

hit a local low in June. 

     --CANDIDATE SUPPLY DOWN

     Agencies reported that candidate shortages continued to weigh on staff

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

staff index both posted marginal increases in July but both remained

substantially below the 50-neutral mark. 

     The availability of permanent staff index picked up to 37.3 in July, up

from 36.4, while the availably of temporary staff index rose a point to 41.9. 

     --VACANICES PICK UP

     Demand for staff increased further in July, with overall job vacancies

expanding at the quickest rate for eight months. Growth was driven by the

private sector, with demand for both permanent and temporary workers continuing

to rise at rates that comfortably outstripped those seen in the public sector.

     --STARTING PAY UP

     Both low available of candidates and strong demand for workers meant there

were steep increases in salaries awarded to permanent starters -- the permanent

salaries index moderated to 30.2 in July but remained firmly above 50. Temp pay

rates, meanwhile, were marginally higher, with the associated index up 0.3

points to 59.7 -- close to April's two year high.

     --'SUMMER BOUNCE' EFFECT

     "With our data showing starting salaries continuing to rise, the latest

official government figures suggest that we are finally seeing the effects of a

tighter labour market feed through to pay," said Sophie Wingfield, Head of

Policy at REC.

     "Following a period of turbulence and big name closures, the World Cup and

heatwave had retailers enjoying a 'summer bounce' and basking in the sun with

demand for temporary staff on the up with many businesses positively revising

their hiring plans," she added. 

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

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

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