LONDON (MNI) – Growth in permanent job placements picked up speed
in February following the rise seen in January, which had been the first
expansion since September last year, according to the KPMG/REC survey
compiled by Markit.
Growth in temporary/contract work contracted further, however, and
wages for permanent positions fell, suggesting that recruits are
accepting lower wages in return for permanent employment. The permanent
salaries index fell to 48.7 from 50.5 in January.
The data overall point to a “broad stabilisation in the labour
market rather than any permanent upward shift in employment,” Jack
Kennedy, economist at Markit, said.
Kennedy said there was evidence that the EU Agency Workers’
directive was pushing down on temporary work, with some employers
turning part time workers into full time ones.
The legislation, which came into force in October last year, gives
agency workers, after 12 weeks, the same basic employment and working
conditions as if they had been recruited directly.
The KPMG/REC permanent placements index has tended to move ahead of
official Labour Force Survey employment measure. It moved up several
months ahead of the late 2009 uptick in employment, and ahead of the
late 2010 downturn.
Job vacancies increased at a faster pace in February, with the
vacancies index rising to 53.5 from 52.3 in January.
Staff availability continued to increase, but at a reduced pace.
The permanent staff availability index declined to 53.0 from 53.7 in
January, while the temporary/contract staff availability index fell to
57.1 from 59.4.
Bernard Brown, Partner and Head of Business Services at KPMG
welcomed the latest signs of strength at least in the permanent sector
of the jobs market but said it was still too early to talk of a ‘Spring
Revival':
“The latest report raises hopes of a Spring revival in the jobs
market with a second successive monthly rise in the number of people
securing permanent roles and the data also indicating that February saw
the rate of growth accelerating to a nine-month high.”
“For those who have found new employment, we are also seeing rates
for wages reducing for the first time since 2009, with a real prospect
of continued downward pressure as the year goes on. Given the ongoing
squeeze many are feeling as costs go up on the high street, it appears
that the price of permanent employment is lower take-home pay, but this
is an inevitable consequence of a competitive, yet still fractious,
market.”
–London newsroom: 4420 7862 7492; email ukeditorial@marketnews.com
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