Archive for November, 2012

Government gets 5/10 for jobs, opportunity creation, says REC

The coalition government gets only average marks for its progress so far on creating opportunities and jobs, in a report published today from the Recruitment & Employment Confederation (REC).

Ahead of the 5 December Autumn Statement, the REC has given the government an overall score of five out of 10, based on progress in 18 priority areas identified in the trade body’s Manifesto in 2010.

The report, ‘Creating opportunities and jobs: half-term report on government progress and recommendations for action’, claims that the government has made no progress or taken the wrong action in the following areas:

• Ensuring that SMEs get a fair chance of securing public sector contracts

• Cancelling the increase in employers’ National Insurance Contributions planned for 2011 which will hinder growth and be a tax on jobs

• Reviewing the Agency Workers Regulations to ensure they are easy to operate for employers and agencies alike

• Ensuring that immigration policy reflects the skills needs of UK business and is based on robust labour market data

• Building on the Young Persons Guarantee by radically improving young people’s readiness for the world of work.

The report also says that the government is on course for delivery in seven areas and has made some progress in a further six.

In addition, it calls on government to deliver key policy outcomes in the second half of this parliament, which include creating a step change in HMRC enforcement of tax rules, improving SMEs’ access to public sector contracts and providing better support for young jobseekers.

REC chief executive Kevin Green said in a prepared statement: “David Cameron, George Osborne and their ministerial colleagues have talked a good game but have not delivered in enough key areas. As we enter the second half of this parliament, we are calling on the government to be brave, bold and confident.”

To see the entire report, visit ‘Creating opportunities and jobs: half-term report on government progress and recommendations for action’

2012
11/29
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JobsOutlook survey reveals silver lining for UK’s permanent workers

A new survey from the Recruitment and Employment Confederation (REC) shows that over half of employers (54 per cent) plan to increase their permanent workforce in the next three months, while 49 per cent see their permanent workforce growing in the long term. In fact, according to the JobsOutlook survey, only a tiny percentage of employers (1 per cent) anticipate cutting back on permanent staff over the year ahead.

Furthermore, October also saw a boost in the number of temporary staff who were subsequently taken on as permanent employees with almost one in four temps landing a permanent role this way, the highest transfer rate since the survey began in July 2009.

The REC’s director of research Roger Tweedy says:

“Business confidence is steadily strengthening each month. With official employment figures continuing to grow and the UK exiting the double dip recession there are fewer dark clouds on the horizon and many employers feel they can confidently plan for the future.

“Employers see transferring temps into permanent staff as a cost-effective, low risk way to grow their workforce. This has been an increasing trend during the recession.”

JobsOutlook reports the responses of 600 employers questioned about their hiring intentions over the next quarter and the next year. Respondents are drawn from across the public, private and non-profit sector, and from across a range of industries and sizes of organisation.

November’s JobsOutlook survey of employers reports that:

• 95 per cent said they plan to either increase (54 per cent) or maintain (41 per cent) their numbers of permanent staff over the next three months (a total increase of two per cent on last month)
• 99 per cent reported they intended to either increase (49 per cent) or maintain (50 per cent) their permanent headcount over the next 12 months (a total increase of two per cent on last month)
• 29 per cent plan to increase agency worker numbers in the next quarter (up two points on last month) with 12 per cent saying they intend to decrease their use of agency workers (compared to 11 per cent last month)
• 22 per cent say they will increase agency workers over the next  year (compared to 21 per cent last month) with 12 per cent saying they will decrease their use of agency workers (up from 11 per cent last month)
• 59 per cent say they will maintain the same number of agency workers over the next quarter, with 66 per cent saying they will make no changes over the rest of the year

2012
11/21
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Jobs figures highlight contrast between UK and rest of Europe – REC

Commenting on the latest employment figures released by the Office for National Statistics today, the Recruitment and Employment Confederation (REC)’s chief executive Kevin Green says:

“Today’s figures are really good news. On a day where there are strikes across Europe because of rising unemployment, jobs figures in the UK are getting better and better. This continues the positive trend we’ve seen throughout the year and shows that employers are confident about the future by taking on more staff.

“We expect to see on-going growth in flexible working. There are opportunities across a whole range of jobs and sectors for interims and contractors, not just the low-paid or low-skilled ones that are often associated with temping.

“Employers often recruit temporary staff into permanent roles. Our data shows that in about 25 per cent of cases employers end up taking on temps as permanent employees. Most temps work that way out of choice, but even for those people who ultimately want a full-time permanent role, a temp or part-time job is a fantastic stepping stone to that.

“However, it is important that the government does not get complacent. Flexible working options are a core strength of our labour market and must not be stifled by over-regulation. There is still a lot of work to be done to help the long-term unemployed get back into work and to improve the process of getting youngsters into their first jobs.”

2012
11/15
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Unemployment figures
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Positive employment outlook set to remain for rest of 2012

The employment outlook for the rest of the year is set to remain positive, according to the latest Labour Market Outlook report from the Chartered Institute of Personnel and Development (CIPD). This quarter’s net employment balance – that is, the difference between the proportion of employers who expect to increase staff levels and those who expect to decrease – is positive at +7, up from +5 for the third quarter of 2012.

This is the third consecutive quarter of projected growth, according to the CIPD, although the private-sector employment balance fell from +28 to +18 over the same period. The public-sector balance, meanwhile, improved, from a negative balance of -36 up to -17, which suggests hiring in the sector is picking up.

Private-sector employment figures were negatively affected by a fall in the employment balance in the manufacturing sector, down from +32 in the third quarter to +13 this quarter.

The report found temporary and part-time employment will help buoy up employment figures for the remainder of this year, with around a quarter of new employees hired on a part-time basis this quarter. Seasonal work aside, almost one-fifth of employers say they have increased their use of casual workers or staff on zero-hours contracts during the past year, particularly in the private sector. Around the same proportion (21%) say they will be increasing the proportion of temporary workers on staff during the next 12 months.

Employers plan to use fewer agency workers between now and 2013, according to the report, with around one-fifth citing this as their intention, perhaps illustrating concerns around the costs associated with the Agency Workers Directive.

Expectations around pay have only risen marginally, to a 1.7% increase over the next 12 months from 1.6% in the last quarter.

Business confidence levels are varied for 2013, the “Labour Market Outlook” suggests. More than three private-sector companies in five (61%) say they are either confident or fairly confident about their growth prospects, while around a quarter of private-sector firms report they are not confident about the growth prospects of their firm at all in the next year.

Gerwyn Davies, a CIPD labour market adviser, said: “The shift to more part-time and temporary employment looks set to continue to drive the jobs market further along the road to recovery. However, while this may drive up employment levels to reach new heights in the coming months, it may also continue to put downward pressure on the living and working standards of an increasing proportion of employees.

“Employers’ focus on cost and risk will continue to squeeze wage growth for most employees, and may compel an increasing number of people to work fewer hours in less secure forms of employment.”

The CIPD also points to a trend of “underemployment”, where people who have jobs are willing to work more hours for a variety of reasons, as one that has risen sharply over recent years and will continue to do so, “forcing workers to take whatever opportunities they can”.

2012
11/13
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REC/KPMG Report on Jobs: Permanent placements rise at fastest rate for 17 months

 

 

Key points:
Permanent appointments increase for first time since May
Growth of temp billings accelerates to 18-month high
Sharpest rise in job vacancies since June 2011
Nursing/Medical/Care staff remain most in-demand
Further weak pay growth recorded

Summary:
The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs – published today – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.

Permanent placements rise at marked rate
Appointments of permanent staff increased for the first time since May, and at the fastest rate in 17 months. Higher placements were supported by a stronger expansion of job vacancies (the most marked since June 2011).

Temp billings growth at 18-month high
Short-term staff billings increased for the third month running in October. Moreover, the rate of growth accelerated to the sharpest for one-and-a-half years.
Pay growth remains muted
Permanent staff salaries rose for a sixth successive month in October, albeit only slightly. Hourly rates of pay for temporary/contract staff increased marginally for the second month running.

Slight rise in candidate availability
The availability of permanent staff continued to rise in October, although the rate of growth eased to a five-month low and was modest overall. Temp availability increased at the weakest rate in the current 55-month period of growth.

Regional and sector variation
Growth of permanent placements was broad-based across all English regions in October, with the sharpest expansion recorded in the North. The South and Midlands both saw faster increases in placements, while London registered a return to growth following eight months of contraction.

Temporary/contract staff billings rose fastest in the Midlands, while marked increases were signalled in the North and South. London posted a modest rise following a decline one month previously.

Private sector workers saw a further rise in demand for their services during October although, for both permanent and temporary staff, rates of expansion were slower than one month previously.

Public sector demand for permanent staff continued to fall in October, albeit at a slower pace, while public sector temporary vacancies rose slightly for the first time in the 11-month series history.

Demand increased for seven of the eight categories of permanent staff monitored by the survey in October. The most sought-after type was Nursing/Medical/Care, closely followed by Engineering/Construction. The only category to register a decline in demand was Hotel & Catering.

Mirroring the situation for permanent staff, Nursing/Medical/Care workers were the most in-demand temp category during October, followed by Engineering/Construction. Demand rose elsewhere with the exception of Executive/Professional, which saw a marginal reduction.

Recruitment and Employment Confederation chief executive Kevin Green says:
“This is exciting news from the labour market.  The positive performance we’ve seen from the UK jobs market over the past year is accelerating, with increases in the number of people placed into both temporary and permanent work last month.

“The sharpest rise in job vacancies in over a year shows employers are confident about their own businesses and, as they deal with increasing demand, are driving the momentum for more people finding work.

“We’ve now seen rises in the number of workers placed into temporary jobs for three months in a row. This is a sure sign British bosses understand the business case for using a flexible workforce to handle fluctuating demand and costs effectively. More people engaging in flexible work is a trend that’s going to increase in our post-recession economy.”

Bernard Brown, Partner and Head of Business Services at KPMG, comments:
“Employment figures received a boost across the US and it seems that the UK is following America’s lead.  The latest figures show increasing numbers of people are finding work across the UK in both temporary and permanent positions.  That alone is good news, but in the context of jobs being filled at the fastest rate for nearly 18 months, we seem to be stepping in the right direction – something that was barely thought possible just a few short months ago. It may not be leaps and bounds yet, in terms of progress, but these are the largest strides for some time and should not go un-noticed.

“There were also concerns that the Olympic employment effect was a temporary blip on a gloomy horizon, but with London and other regions across the country now seeing a broad growth of permanent placements, indications are that employers are gaining in confidence and laying the foundation stones for economic growth.  Of course, no one should be under any illusions that a strong jobs market indicates a strong recovery, but confidence is what drives a buoyant market and the hope must be that businesses are ready to recruit for the long-term.

“It should, however, come as little surprise that demand for staff is low in the public sector.  At least this is being partially off-set with the data showing that private sector workers are seeing a further rise in demand for their services.  Perhaps as we edge towards the end of 2012, businesses really can start to look forward to a better new year.”

2012
11/08
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Recruitment industry growth exceeded expectations for 2011, but challenges lie ahead as market matures

The recruitment industry grew by 4.3 percent (to £25.7billion) in the financial year 2011/12 and is predicted to surpass its pre-recession peak of £27billion by the end of 2012/13, according to research published today by the Recruitment and Employment Confederation (REC).

However, despite an increase in industry turnover the number of recruitment businesses actually fell by 11 percent between 2010 and 2011 (from 8,395 to 7,435), just one indication of the significant changes ahead for the maturing recruitment market.

The Recruitment Industry Trends Survey 2011/12 also reveals that:

– Growth was driven by the flexible labour market as temporary placements increased by 5.4 percent while the volume of permanent placements fell by 8.9 percent.
– Lack of skilled candidates and pressure on margins were amongst consultants’ top concerns.
– The majority (43 percent) of agencies reported earning margins of 10 to 14 percent and the proportion of agencies stating they earned over 25 percent halved for the second year in a row, to 1.7 percent.
– The recruitment industry workforce grew by 1.8 percent.

Analysis in an accompanying paper, Back to the Future, identifies key trends that the REC believes will shape the market in the years to 2020 and beyond. Those conclusions include that:

– The industry will continue to consolidate with larger firms seeking to grow through the acquisition of smaller, niche players.
– The increasing use of new technologies and social media will mean that recruiters won’t be the high street presence they are today in a few years’ time.
– As procurement teams in large public and private employers become more focused on simplifying processes, reducing cost and managing risk the use of intermediaries will increase as will the downward pressure on margins.

The market will segment: the demand for rare talent will ensure the continued use of executive search and niche recruiters; the need to manage costs and flex to meet volatile demand will drive flexible staffing volumes; while permanent recruitment will come under increasing pressure from growing in-house resourcing teams.

Commenting on what these insights mean for recruiters, REC chief executive Kevin Green says:

“The recruitment industry won’t be able to piggyback on strong economic growth in the wider economy as it has done in the past and running a successful agency is only going to get harder and demand more of recruiters. The ones who survive and thrive will be those who stay ahead of these trends and become expert providers of talent within their particular niche sectors. The future is all about being an inch wide and a mile deep in terms of focus and knowledge.

“We’re publishing this analysis now – when agencies are conducting their business planning for 2013 – because we believe these are the key trends that recruiters need to be taking into consideration so they can be successful in the new emerging landscape.”

Both reports are free to download for all REC members and from January all REC research will be free to REC members.

2012
11/06
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Temp hiring up in all regions but London, finds Venn Group

There has been a 3% increase in temporary recruitment across the UK quarter-on-quarter, with all regions but London – which has seen a drop following the Olympics – benefiting, according to temp and contract specialist recruiter Venn Group.

Its analysis of hiring activity across the business saw activity in London down 15.5% in Q3 2012 compared with Q2, with commerce and industry roles in the capital down 58.8%.

Nationwide, financial services vacancies were also down 16.4% on the quarter and 10% lower than at the beginning of 2012.

Public sector hiring is up 14.3% on last quarter. Venn Group director Robert Bowyer says: “A trend which we are seeing across all sectors in every region is that IT and digital are performing particularly well. Businesses that cut back on spending when times were tougher are now investing in infrastructure and we expect to see this continue into next year.”

2012
11/01
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Recruitment
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