IT Jobs Report November

There were several key highlights and trends in the job market arising form the IT jobs figures for last month. Here are the main points of interest for those looking at the IT/Tech jobs market going into December.

1. Decline in Permanent Placements: Permanent job placements continued to fall, marking over two years of contraction. The rate of decline accelerated to its steepest since March, influenced by recruitment freezes and business uncertainty ahead of the government Budget.
2. Softening Salary Growth: Permanent salary growth slowed to its lowest level since February 2021. While some firms increased starting salaries for high-quality candidates, overall demand for workers decreased, leading to softer growth. Temporary pay rates saw a modest increase but remained below historical trends.
3. Falling Vacancies: The demand for both permanent and temporary staff declined for the twelfth consecutive month, with the rate of contraction reaching its highest since early 2021.
4. Rising Staff Availability: The availability of staff continued to rise sharply, driven by lower demand and redundancies. The increase in temporary staff availability was the highest since December 2020.

These trends reflect ongoing challenges in the job market, including economic uncertainty and shifting demand for workers.

IT Report from The Midlands

October’s figures highlight the challenges facing the Midlands’ labor market, with a continued decline in demand for both permanent and temporary staff.However, it’s likely that many firms in the region paused recruitment efforts until the outcomes of the Autumn Budget were clear.

The Chancellor’s announcement of an increase in National Insurance adds another cost consideration for management teams. Nonetheless, we hope to see more firms in the Midlands moving forward with their recruitment plans for 2025 now that the budget details are known.

These figures serve as a timely reminder that employer demand for new staff has weakened since the election, although the overall picture in the UK remains more resilient compared to pre-pandemic levels.

A positive sign in this month’s data is the faster increase in temp billings compared to September, marking the seventh consecutive month of growth in the Midlands.

However, the situation is precarious.

Firms need to be encouraged to invest, especially with recent changes to NI thresholds, the minimum wage, and potential changes to employment law causing concern. Businesses will be looking to the Government for a clear, stable growth plan and detailed regulatory changes that support rather than hinder them in the coming months. Temporary work is particularly valuable for helping people transition out of inactivity, and it’s crucial to address the threat of new employment laws that could undermine opportunities for workers.

There is little in the pay data, with salary increases in the Midlands slowing from the previous month, to suggest that the Bank of England should refrain from further interest rate cuts, which would also boost business confidence.

Additionally, data on shortage sectors underscores the importance of delivering a skills strategy aligned with business needs, which is one of the most significant achievements that the Government and businesses could accomplish together.

IT Report from The North

Permanent hires have been on the decline for over a year, and the accelerated contraction in October raises concerns for the North. Many firms in the region likely postponed their recruitment plans ahead of the Autumn Budget, prompting a pause in hiring activities.

The Chancellor’s announcement of an increase in National Insurance adds another cost consideration for management teams. However, we hope to see more Yorkshire firms moving forward with their recruitment plans for 2025, benefiting from greater certainty and clarity.

These figures serve as a timely reminder that employer demand for new staff has weakened since the election, although the overall picture in the UK remains more resilient compared to pre-pandemic levels. A positive sign for the North is the rebound in temp vacancy growth after a decline in September, along with an increase in permanent vacancies. However, the situation is precarious.

Firms need to be encouraged to invest, especially with recent changes to NI thresholds, the minimum wage, and potential changes to employment law causing concern. Businesses will be looking to the Government for a clear, stable growth plan and detailed regulatory changes that support rather than hinder them in the coming months.

Temporary work is particularly valuable for helping people transition out of inactivity, and it’s crucial to address the threat of new employment laws that could undermine opportunities for workers.

The very marginal increase in salaries in October and the weakest rise in temp wages for nearly a year in the North suggest that the Bank of England should not refrain from further interest rate cuts, which would also boost business confidence.

Additionally, data on shortage sectors across the UK underscores the importance of delivering a skills strategy aligned with business needs, which is one of the most significant achievements that the Government and businesses could accomplish together.

IT Skills in Demand:

IT Computing

Automation Testers

Cyber Security

Data Architect

Data Engineers

Developers 

Full-Stack Developer

Java

Technical Roles

Technology