Recruiters Enjoy Jobs Growth

Permanent staff placements continued to rise in December but the rates of growth were slightly weaker than the three-month highs recorded in November. That is the overall verdict of the latest Recruitment and Employment Confederation and KPMG Report on Jobs.

Permanent staff vacancies increased at the sharpest rate in four months, while growth of temp vacancies accelerated to a six-month high.

Although the availability of permanent staff increased for the third month running in December, the latest improvement was only marginal and the slowest in that sequence. Correspondingly, permanent staff salaries rose at a stronger rate as employers competed for skilled candidates.

Kevin Green, Chief Executive of the Recruitment & Employment Confederation, said: “While these figures continued to show private sector employment doing well, the next few months will be very tough for the jobs market in the UK.

“With public sector cuts, the VAT rise and slowing economic growth, we expect to see businesses being much more cautious about hiring in the short term.

“We are delighted that the Government is saying it intends to be pro business, pro growth and pro jobs. We’ll wait to see the proposals in full but addressing the issue of one million young people under 24 not in education or employment is critical for the long-term success of our economy and must be a priority for the Government in 2011.”

Bernard Brown, Partner and Head of Business Services at KPMG, said: “The latest data suggests again that the UK job market is on the road to recovery as growth of permanent placements remained solid and demand for staff rose strongly.

“A look at the sectors indicates that the private sector is mainly responsible for the overall positive picture, with IT and computing as well as executive and professional staff most in demand.

“While demand has been strong, we are entering a critical phase for the UK job market with two big question marks. First, the impact of Government cut backs in public sector spend and employment, which should start to bite over the coming months. Second, the impact of the recent VAT increase and whether this will affect UK consumer demand and job creation.”

Jobs & Salary Growth Continues

The latest survey data for December 2010 from the REC and KMPG shows the UK job market is on the road to recovery, whilst also highlighting that permanent salaries are starting to rise.

RP have just made a key appointment to enhance their current growth. Alistair Lockhart has joined the team to spearhead expansion into new markets.

Britain is Hiring Again!
More than a quarter of all UK companies say they plan to take on more staff over the next 12 months, helping unemployment fall below the current rate of 8%The survey of nearly 700 companies by the Confederation of British Industry found 28% of firms were hoping to boost headcount, with 49% set to raise wages to around the level of retail price inflation.
In a further sign that the economic recovery is gathering pace, just 5% of the companies polled said they were freezing recruitment for the rest of 2010.
Last year more than two-thirds of companies questioned imposed a blanket ban on new recruits.

New Hires

Recruitment Partnership has made two new appointments as it continues to experience an upturn in trading.

New £5.93 minimum wage rate from October

National Minimum Wage rates are to rise from October 2010, with the minimum rate for workers aged 21 and over rising to £5.93 an hour.

Apprentice pay will also be covered by the minimum wage framework for the first time with a new apprentice rate of £2.50 an hour. The Low Pay Commission considers that this change 'should make apprentice pay across the UK easier to administer and subject to better enforcement arrangements.'

David Norgrove, Chair of the Low Pay Commission, said:

"The UK economy is on track for recovery, but the speed and strength of that recovery are unclear. We have recommended an increase in the adult rate of the National Minimum Wage that balances the needs of workers against the challenges that remain for businesses.

"This year, the Commission has paid particular attention to the vulnerability of young people in the labour market. They have been affected more than anyone else in this recession and our recommendations reflect their vulnerability. We shall be focusing research effort in this area in the coming year.

"We are pleased that apprentice pay will, for the first time, be brought within the National Minimum Wage framework. Our aim was that the apprentice arrangements should be simple, robust and straightforward to administer and enforce."

Charles Cotton, CIPD Performance and Reward Adviser said:

"The LPC is a generally sensible body but this year's recommended hike in the NMW looks to have thrown caution to the wind, especially with regard to the youth and new apprenticeship rate.

"It is difficult to see how this increase will help create jobs or offer a boost in training places for unemployed young people. In particular, combining a higher minimum wage with the impending hike in employers' national insurance contributions really would represent a hefty 'tax on jobs'. Pricing young people out of work, while also using taxpayers' money to subsidise a youth jobs guarantee, doesn't make sense. We'd have hoped for a more joined up approach.

But the TUC disagreed. TUC General Secretary Brendan Barber said:

"Once again the Low Pay Commission has managed to resist employer calls for a freeze and has been able to agree a modest increase to the minimum wage rate despite the difficult economic times.

"This rise will benefit around a million people and will mean an extra £5.20 in the wage packet of a 40-hour per week worker on the minimum wage.

"This is a relatively modest increase which the evidence shows employers can afford.

"In a rich country like the UK it is important that those who do low paid jobs are not left behind. It would be particularly unfair if low paid workers had to bear a disproportionate part of the cost of the economic mess created by super-rich city bankers, who are still claiming their bonuses.

"A decent minimum wage is one of the benchmarks of a decent society."