LABOUR MARKET OUTLOOK – NOVEMBER 2021
December 20, 2021
The key findings from the November report are;
PERMANENT PLACEMENTS RISE AT QUICKER PACE IN NOVEMBER;
Permanent staff appointments across the UK have risen again for the ninth month running in November. Placements rose at a much sharper rate than had been seen in October – the fifth quickest on record.
However as was seen in previous months, recruiters have reported that there is still a shortage of candidates, which was limiting the abilities to fill some vacancies.
Sharp rises in permanent placements were recorded across all of England in November. With the Midlands and London showing the strongest increases and the slowest seen in the South.
The availability of staff for the month of November fell at a slower, but still sharper rates than normal.
Permanent candidates fell for a tenth month running in November – Reduced candidate availability was often linked to a combination of high demand for staff, general labour shortages, fewer foreign workers and availability for short term/temp staff continued to decline, as it has since March. The rate of reduction was the softest seen since May but remained substantial overall.
STARTING SALARY INFLATION CONTINING TO INCREASE;
With candidate shortages still seemingly affecting the recruitment sector, it seems that this is continuing to lead to an increase in starting salaries. We can see that starting salaries have increased month on months since March 2021. Furthermore, the rate of inflation hit a fresh record high for the fifth month in a row.
The latest data from the Office for National Statistics showed a continued increase in vacancies across the whole of the UK in the 3 months leading upto October.
The number of vacancies increased from 1,108,000 to 1,172,000, a 5.78% increase. This shows a 117.8% increase when compared with the same time last year. And 45% higher than pre pandemic level leading upto February 2020 which was sitting at just 811,000.
Source: KPMG and REC, UK Report on Jobs