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East Anglia: Markit ‘Report on Jobs’ reveals 16-year high in demand for permanent staff

06:00 08 April 2014

Steve Muncey, KPMG

Steve Muncey, KPMG

Archant

Southern England, including East Anglia, London, has seen the strongest rise in demand for permanent staff in 16 years, according to a survey of recruitment firms.

Markit Economics’ The Report on Jobs: South of England found the region’s sharp increase in demand for permanent staff has outpaced the UK-wide trend, with availability of candidates falling at the fastest rate since November 1997.

The study is based on data from monthly replies to questionnaires sent to around 150 recruitment and employment consultancies across the East of England, South East England and South West England, but excluding London.

Salary growth for permanent staff is at its highest for more than 13 years. Meanwhile, in March, demand rose in the region at the fastest rate since March 1998.

Growth in demand for temporary staff remained marked, almost matching January’s record of more than 15 years.

The region’s recruitment consultants reported ongoing strong growth in candidates placed in permanent jobs in March. The rate of increase slowed to a four-month low, however.

But the supply of permanent candidates in the South of England’s labour market fell for the ninth month running in March.

All four English regions surveyed registered strong growth of permanent placements in March. The strongest increase was again seen in the north while the weakest was noted in the south.

Growth slowed in the Midlands, but picked up to a six-month high in London.

Steve Muncey, senior partner for KPMG in East Anglia said across the region, demand for candidates was continuing to outstrip supply, while the number of people looking for permanent jobs fell at the fastest rate since 1997.

“Britain may not yet be near the levels of full employment that Chancellor George Osborne committed to last week but, with permanent and temporary placements remaining strong, anyone looking for a new job must be increasingly confident that their search will soon be over,” he said.

“This mismatch between supply and demand is inevitably heating up salaries, with wage growth reaching the highest it’s been for 13 and a half years. With the number of employers searching for permanent staff in the region outpacing the UK average, this is a great time for job seekers in the south.

“The next step will be for more candidates to put themselves forward for the roles on offer – something they still seem hesitant to do.”

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