Image source: photologue_np
The number of people placed in permanent jobs in the North increased sharply during July, the latest KPMG/REC report on jobs shows.
Data collected from recruitment agencies and employment consultants showed it was the second fastest rate of expansion in the survey’s history.
Temporary and contract billings grew at their fastest in nine years and demand for such workers significantly increased in the same period as supply dropped.
Permanent candidate numbers in the North also fell away during July, as the national picture showed a similar theme.
The data indicated permanent salaries rose in July and temporary workers’ pay rose moderately, but at the strongest rate in five months.
At national level, the rate of wage growth was the strongest it has been in five-and-a-half years.
Mick Thompson, KPMG’s Newcastle office senior partner, said: “Continued rising demand for permanent and temporary workers in the North further evidences the region’s economic recovery and the appetite of the business community to capitalise on growth opportunities domestically and abroad.
“While the sustained increase in permanent staff placements and temporary worker billings is depleting the North’s pool of available talent, the competition to recruit has intensified. This will be welcome news for people across the region as the resulting boost to salary and wage inflation, which has been subdued during the downturn, helps to offset the pressures of escalating living costs.”
REC chief executive Kevin Green added: “The jobs market continues to skyrocket with permanent employment and temporary placements increasing. A combination of confidence returning to the UK economy and higher employer demand have contributed to this impressive set of figures.
“Starting salaries accelerated in July and this is an early indicator of increased competition for candidates and skills shortages in a growing number of sectors. In addition to this, hourly rates for temp workers increased.
“We anticipate starting salaries increasing over the coming months as the economy strengthens and competition to secure talent hots up.”