April's
There were reports of a heightened caution amongst clients, with firms reportedly holding back on recruitment. However, the overall fall in placements was noticeably slower, easing to the weakest for ten months. Similarly, temp billings declined in April, but the rate of contraction was the slowest since January.
Meanwhile, there was also a weaker fall in demand for staff during April, both for permanent and temporary workers. Pay growth rates nonetheless strengthened. Permanent salaries rose to the fastest degree in 2024 so far, whilst temporary wage inflation was the strongest for nearly a year.
The report is compiled by
Slower falls in permanent and temporary staff appointments
There was a further fall in the number of permanent staff appointments made by
Pay rates improve in April
Pay rates picked up during April as firms remained willing to raise wages to attract suitable candidates. Latest data signalled that pay has now increased for both permanent and temporary staff for 38 months in a row. For permanent workers, the rate of growth accelerated to its highest in the year-to-date, though remained below its historical survey trend. Temporary staff saw their pay rates rise at the steepest pace since
Slower falls in staff demand signalled
April's survey data showed that overall demand for staff continued to fall, extending the current downturn to six months. That said, the rate of contraction was modest and the slowest since January. Temp staff demand was down only marginally and to a slower degree than for permanent workers.
Fastest increase in staff availability since last November
Candidate availability continued to rise during April, with the rate of growth for all staff hitting its best for five months. Panellists noted a higher number of redundancies, whilst also signalling a general increase in the number of people looking for work. Rates of growth in candidate availability were similarly strong for both permanent and temporary staff.
Regional and Sector Variations
As has been the case throughout the year so far, permanent candidate numbers declined across all English regions during April. The steepest reduction was again found in the South of
Of the three English regions that recorded a decline in temp billings, by far the steepest cut was seen in
Led by the Retail category, April saw seven out of ten broad sectors covered by the survey register a drop in demand for permanent staff. Of the three sectors where growth was registered, the strongest rise was for Engineering.
For temporary vacancies, half of the sectors covered recorded a fall in demand during April, with retail registering by far the steepest contraction. Of the five categories that saw growth, the strongest increase was seen for Blue Collar, followed by Engineering.
Comments
Commenting on the latest survey results,
'
'While there are still complexities, like pay rates improving due in part to last month's 9.8% rise in the National Living Wage, overall pressure is easing on the labour market. Ongoing weak demand is driving the steady decline in permanent staff appointments month on month, and we've seen a sharp uptick in candidate availability.
'Business leaders see this cooling, combined with weakening inflationary pressure, as indicators for the Bank to hopefully shift to a more dovish position. Companies would then have the confidence and certainty to press go on their investment strategies.'
'The critical moment in any labour market slowdown is the point at which demand starts to turn around. Today's hiring data suggests that point is close, with fewer recruitment firms reporting a drop in demand. While the trend is still gently down, the pace of decline in permanent hiring is the slowest in ten months. Temporary hiring, which has had much less of a decline overall, also scored better than last month. Firms have told us all year that they will be willing to hire and invest in their business when confidence returns to the wider economy - and there is a glimmer of lower inflation and the prospect of lower interest rates starting to drive that now.
'Pay continues to rise, with a slight bump up this month likely to have been driven by the April peak in employer pay rises and the recent Minimum Wage rise. With substantial wage rises attracting people to work, and low unemployment, businesses and government alike will need new approaches to developing and engaging our labour force - alongside new technology - if the
'Our flexible labour market is at the heart of this. It is one of the big success stories of the
Contact
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REC
Communications Manager
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hamant.verma@rec.uk.com
Economics Director
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andrew.harker@spglobal.com
Sabrina Mayeen
Corporate Communications
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sabrina.mayeen@spglobal.com
Methodology
The
Survey responses are collected in the second half of each month and indicate the direction of change compared to the previous month. A diffusion index is calculated for each survey variable. The index is the sum of the percentage of 'higher' responses and half the percentage of 'unchanged' responses. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. The indices are then seasonally adjusted.
Underlying survey data are not revised after publication, but seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series.
For further information on the survey methodology, please contact economics@spglobal.com.
Full reports and historical data from the
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