November IT Jobs Report
The rise of placements and salaries continues, but is slowing down
Key points from October:
- The growth of permanent appointments was strong in October, continuing from September
- Pay growth continues, but at a slower rate
- Staff availability continues to decline
Growth of staff placements eases…
The placement of permanent staff in the UK continued to rise in October, for the 25th consecutive month. Though the rate of growth was the slowest in 11 months, this was also reflected in the temp/contract market where growth continued but at its slowest rate since June 2013. Many recruitment agencies reported clients becoming slower in their decision making and a shortage of candidates available with a high enough skill level. The highest performing region in the UK for permanent placements was the Midlands with the North reporting the slowest expansion.
…as does growth of salaries
October was a slow month for salary growth, seeing permanent pay increase at the weakest rate since February. Temporary and contract pay also slowed to its lowest in 5 months. This is despite the availability of candidates remaining tight, recruiters reported the decline in permanent candidates as marked while temporary/contract availability decreased at its fastest pace in 3 months.
While vacancy growth slowed its lowest in 10 months
Staff vacancies continued to rise in October but the rate of expansion moderated to the slowest it has been since December 2013. This was the case in both permanent and contract markets. As has been the case for much of the year, demand for staff was considerably stronger in the private sector than the public sector.
According to the Office for National Statistics vacancies rose 23.9% on an annual basis in the three months leading to September. Internet based recruitment spending continued at a strong annual pace. The latest data showing an 8.8% rise in Q2 2014 from the corresponding period in 2013.
IT continues to perform well against other sectors
Engineering remained top of the table in terms of vacancies for October, marginally ahead of IT & Computing. The next performing sector was Accounting/Financial with Hotel & Catering suffering the slowest growth of all sectors
Skills in short supply
Permanent staff availability fell for the 18th consecutive month in October. Temp/contract staff availability also showed a marked decline for October, with the latest fall even sharper than those in August & September.
Key permanent staff skills in short supply:
- Digital Marketing
- Web designers
Key temp/contract staff skills in short supply:
- IT security
Unemployment drops below 2 million
For the first time since the financial crisis in 2008 the total number of unemployed in the UK fell below 2 million, marking a further fall in the 3 months up to August.
*All facts and figures provided by Markit, sponsored by REC and KPMG