The outlook on jobs and salaries

It’s time to take a look at the latest data on the jobs market in the South of England from the KPMG report on Jobs. All data is up to and including July 2022.
A brief reminder of the key to these graphs. 50 is the baseline number for each of them. If something is at 50 it is neutral, signifying no growth (or decline).

The placements
Permanent placement growth slipped to a 17-month low in July, although still above that neutral threshold of 50. Yet, the rate of growth was the lowest since the current period of expansion began in March 2021. Rising activity levels at clients and strong demand for workers supported the latest rise in placements, but there were reports of weaker confidence towards the outlook weighing on growth.

Staff availability
July saw the softest drop in permanent staff supply for 15 months and has now declined in each of the last 17 months. That being said, the latest reduction was the softest since April 2021 and less than the pretty severe UK average. Reports from recruitment consultants across the South of England highlighted that people were becoming more hesitant to apply for new roles due to the greater economic uncertainty, which has undoubtedly exacerbated ongoing skills shortages.

Pay Pressures
July data revealed the softest rise in permanent starters’ pay for 11 months. Whilst the rise was soft, it is still significant. AS it has been for quite some time, candidate shortages and a string demand for staff continues to push salaries up.

Our thoughts
Commenting on the latest data, Jamie Harris, director at Enterprise Recruitment, said: “The trends we have seen over the last year or so are continuing. It’s basic supply and demand at play, coupled with the wider economic situation the UK finds itself in. A lack of candidates presents issues for employers and, if they do manage to find them, they are having to offer significant starting salaries.
Of course, that is where we come in. We have access to a large pool of talent and we always work with our clients to ensure they get the most value from their appointments. So, if you have roles to fill, we’d be only too happy to help you.

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