The jobs market remained in robust health during June 2017, as growth in hiring rates continued to tick upwards at a rapid pace.
Data from the latest Report on Jobs from Markit and the Recruitment & Employment Confederation (REC) has indicated that permanent placements continued to rise sharply in June – albeit at a slightly slower rate than May’s 25-month peak – while growth in temporary billings also remained steep, despite a slight downturn from the month before.
A similar trend was observed in terms of levels of demand, which remained close to the 21-month peak seen in May. This is because candidate availability remains constrained, with the pool of available talent continuing to shrink markedly in June, particularly in the temporary hiring sector.
As a consequence of these trends, permanent starting salaries grew at the fastest level in 19 months, while growth in hourly pay rates reached a six-month record high. It demonstrates the fact that current market trends are creating favourable conditions for those seeking to secure a better position.
Tom Hadley, director of policy at the REC, said: “With fewer people currently looking for jobs, employers are having to increase starting salaries to secure the talent they need. This is creating great opportunities for people with in-demand skills who are prepared to change jobs, but it’s also putting unsustainable pressure on many businesses.”
In order to ensure these trends do not cause damage to businesses in the longer term, the REC called for fresh investment in training the domestic workforce. The organisation would also like to see a five-year roadmap for a post-Brexit immigration policy to enable businesses to plan effectively for any reduction in access to overseas talent that may ensue after the UK leaves the European Union.