Increased market confidence leads to rise in permanent staff appointments - report

The Midlands has seen an accelerated increase in the number of permanent staff appointments during August due to businesses becoming increasingly confident about market demand as the economy fully reopened.

That 's according to The UK Report on Jobs produced KPMG and the Recruitment and Employment Confederation (REC).

The Report on Jobs provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by around100 recruitment consultancies and employers to provide the first indication each month of labour market trends.

In August, the number of permanent staff appointments across the Midlands continued to increase rapidly compared to July and was among the fastest recorded in the history of the survey. Panel members often linked this hiring uptake to stronger market confidence as the economy reopened.

Whilst the uptick in permanent placements in the Midlands measured weakest of all four monitored English regions, temporary billings in the Midlands rose the fastest since January 2015 during the same month and recorded higher than that across UK level.

Anecdotal evidence suggested that higher demand meant firms took on temporary candidates where permanent roles could not be filled.

Kate Holt (pictured), people consulting partner at KPMG, said: “The recruitment boom in the Midlands continues to gain momentum, in line with growing market confidence, as businesses press ahead with their hiring plans.

“It 's an increasingly competitive time for employers however, as the demand for quality candidates still outweighs the supply, and we 're seeing some employers taking on temporary staff to make up for this in some areas.

“The Midlands is home to a variety of quality businesses and given the shortages many sectors are facing, I 'd encourage anybody who is currently out of work to look at what skills are in short supply and if suitable, potentially consider changing sector. ”

The Midlands also registered the fastest rise in permanent new staff salaries, largely attributed to efforts to attract staff to senior and executive roles amid high demand for experienced candidates.

Recruiters across the region reported a ninth consecutive monthly rise in average hourly pay rates for short-term staff during August and the rise in temporary pay rates was the quickest of the monitored English regions.

Neil Carberry, chief executive of the REC, said: "In August, the number of staff available to start jobs continued to fall, deepening the current labour shortage.

“Recruiters are working around the clock, placing more people into work than ever as these figures show. Switching the entire economy on over the summer has created a unique demand spike, and a short-term crisis.

"But it would be a mistake for businesses to think of this as only a short-term issue. A number of factors mean that the UK labour market will remain tight for several years to come. Business leaders should be looking now at how they will build their future workforces, in partnership with recruiters, including the skills and career path development. But attracting and retaining staff also requires a serious assessment of why workers want to work with the firm - from management approaches to facilities, as well as pay.

“Government can help too, by aligning skills offers with business needs and making sure the new immigration system works. But government also must prioritise alleviating the immediate crisis - we 'd like to see a joint forum where government departments and business can collaborate to tackle worker and skills shortages."