IT Jobs Report February

There is an uncertainty over the outlook which continues to constrain hiring. Notably, permanent staff appointments fell at a sharp and accelerated pace, while temp billings fell only slightly. There were frequent reports that businesses had often paused recruitment plans due to the subdued economic environment, while fewer vacancies also dampened staff placements.

Overall demand for workers falls for third month running

Total vacancies across the UK declined again during January, albeit marginally. Demand for staff has now weakened in four of the past five months, driven by a sustained reduction in permanent job opportunities. Meanwhile, temp vacancies expanded at the slowest rate since November 2020 and only slightly.

Permanent salary inflation slips to 34-month low

Although starting salary inflation remained sharp in January, the latest increase in pay was the softest recorded since March 2021 and slower than the series average. Temp wage growth quickened slightly to a five-month high, but was also below the historical trend. According to recruiters, competition for suitably-skilled staff amid a strong inflationary environment continued to push pay rates higher. However, there were also reports that pressure on client budgets had limited overall increases in pay.

The supply of candidates continues to increase

UK recruiters registered a further sharp increase in overall candidate availability at the start of the year. This was despite the rate of growth easing to a four-month low. Permanent staff supply continued to rise at a slightly quicker pace than that seen for short-term workers, but both saw upturns ease since December. There were frequent reports that redundancies and a slowdown in recruitment activity had increased the pool of available workers.

Vacancies continued to decline over the final quarter of 2023, according to latest data from the Office for National Statistics (ONS). The number of open roles fell by 49,000 over the three months to December to reach 934,000 overall. This marked the lowest level of vacancies for two-and-a-half years.

Nevertheless, the number of unfilled job roles was still over 100,000 higher than that seen just prior to the pandemic (826,000 in the three months to February 2020).

Data from the Office for National Statistics (ONS) indicated that total employee earnings (including bonuses) increased +6.5% on an annual basis over the three months to November 2023. Though strong in the context of historical data, this marked the softest rate of pay growth since the three months to March 2023. 

Similarly steep increases in average earnings were recorded across both the private and public sectors in the latest three-month period (+6.4% and +6.6%, respectively). In both cases, growth rates have cooled since last summer, particularly in the public sector which, at the time, was boosted by one-off payments across the NHS and civil service, according to the ONS.

Midlands IT Jobs Report

Staff appointments

The number of people placed into permanent jobs across the UK fell for the sixteenth month running in January. The rate of decline strengthened from December and was among the strongest in the sequence. All four monitored English regions registered sharp drops in permanent staff appointments, with the quickest reduction seen in the Midlands, closely followed by the South of England.

There was also a further fall in temporary billings in the UK, the third in as many months. The decrease was only modest, and the softest in the current sequence of reduction. The North and South of England recorded an uplift in temp billings in January, with rates of expansion their quickest for ten and eight months respectively. Conversely, there were strong declines reported in London and the Midlands.

Candidate availability

Candidate availability for permanent roles across the UK increased at the start of 2024, extending the current sequence of improvement to 11 months. That said, the uplift slowed from December and was the softest since last September. All four monitored English regions saw an uptick in permanent staff supply, the sharpest of which was recorded in London.

At the national level, although the number of temporary candidates available through recruiters rose steeply, the strength of the upturn was the slowest since last May. London and the Midlands both saw the respective rates of increase strengthen on the month, while there were softer expansions recorded in the North and South of England.

Pay Pressures

Average starting pay for permanent new joiners in the UK continued to increase during January, thereby extending the current sequence of inflation to 35 months. The rate of inflation slipped to the lowest since March 2021, but remained sharp overall.

On a regional basis, the steepest increase in starting salaries was seen in London, followed by the North of England. The softest increase was recorded in the South of England. Latest survey data pointed to a further rise in temp wages across the UK in January. Notably, the latest increase in short-term pay was the fastest in five months and solid overall.

The South of England and London both saw temp wage growth accelerate, while the Midlands and North of England saw hourly pay inflation ease from the previous survey period.

The North of England IT Jobs Report

Staff appointments

The number of people placed into permanent jobs across the UK fell for the sixteenth month running in January. The rate of decline strengthened from December and was among the strongest in the sequence. All four monitored English regions registered sharp drops in permanent staff appointments, with the quickest reduction seen in the Midlands, closely followed by the South of England.

There was also a further fall in temporary billings in the UK, the third in as many months. The decrease was only modest, and the softest in the current sequence of reduction. The North and South of England recorded an uplift in temp billings in January, with rates of expansion their quickest for ten and eight months respectively. Conversely, there were strong declines reported in London and the Midlands.

Candidate availability

Candidate availability for permanent roles across the UK increased at the start of 2024, extending the current sequence of improvement to 11 months. That said, the uplift slowed from December and was the softest since last September. All four monitored English regions saw an uptick in permanent staff supply, the sharpest of which was recorded in London.

At the national level, although the number of temporary candidates available through recruiters rose steeply, the strength of the upturn was the slowest since last May. London and the Midlands both saw the respective rates of increase strengthen on the month, while there were softer expansions recorded in the North and South of England.

Pay Pressures

Average starting pay for permanent new joiners in the UK continued to increase during January, thereby extending the current sequence of inflation to 35 months. The rate of inflation slipped to the lowest since March 2021, but remained sharp overall. On a regional basis, the steepest increase in starting salaries was seen in London, followed by the North of England. The softest increase was recorded in the South of England.

Latest survey data pointed to a further rise in temp wages across the UK in January. Notably, the latest increase in short-term pay was the fastest in five months and solid overall. The South of England and London both saw temp wage growth accelerate, while the Midlands and North of England saw hourly pay inflation ease from the previous survey period.

IT Jobs in Demand:

IT/Computing

Automation Testers

Cyber Security

Data Engineers

Developers

Senior IT Engineers

Software Engineers

Technical Roles

Technology