Demand for new staff is increasing strongly in the UK at the fastest pace since July 1998, according to the Report on Jobs published by KPMG and the Recruitment & Employment Confederation. What’s more, the rate of salary rises for permanent jobs is at a six year high, while for temporary workers pay is also marking steady growth. Improvements were recorded across all English regions, and in both the private and public sector, suggesting a comprehensive recovery in the labour market- although private sector demand for staff continued to show a much stronger trend than public sector demand.
The report draws on original survey data provided by recruitment consultancies to provide an all-inclusive guide to the British labour market. Among the most striking findings concerning the UK job market are the following:
Slower but Still Considerable Growth of Staff Appointments
· The number of people placed in permanent and temporary or contract roles continued to rise in November.
· New permanent roles are rising fastest among engineering workers and in the medical sector, while blue-collar workers are enjoying the fastest rise in temporary or contract vacancies.
Permanent Salaries Increase at Fastest Pace in six Years
· Growth of permanent staff salaries accelerated further, reaching the strongest rate since November 2007.
· Temporary/contract staff pay rose at a solid pace that was sharper than in October.
· The availability of candidates to occupy permanent roles fell even more in November, with the rate of decline accelerating to the sharpest since July 2007.
· Temporary/contract staff availability fell at the quickest pace in nine years.
Private Sector Demand for Employees Remained Stronger Than Public Sector Demand
· The strongest growth regarding demand for staff was evident for permanent employees in the private sector, although temporary/contract staff also signaled a marked increase.
· In the public sector, rates of growth were slight for both permanent and short-term workers.
Which Careers will be in Demand in 2014?
According to a recent study by The Ladders, which was based on what keywords job seekers use to search for jobs as well as the kind of jobs which employers are posting, the careers which will be mostly in demand in the coming year are in the technology industry. Developer and Analysts were key growth job titles with 4 of the top ten job titles including the keyword developer, (iOS Developer, UI Developer, Android Developer, and Business Intelligence Developer).
The service sector has the second largest sector of growing jobs which consists mainly of analytical and consulting services.
On the contrary, middle management jobs like ‘manager’ and ‘director’ are rapidly decreasing in relative popularity. In fact, job titles containing the word ‘manager’ are 25% lower than the average growth rate and jobs containing the word, ‘director’ are 50% lower.
Promising job Market Outlook for 2014
The outlook of the British economy and the labour market is projected to be positive in the coming year. Figures released by the British Chamber of Commerce show that the UK's GDP is set to grow by 2.7% in 2014; which is an improved estimate from a previous prediction of 2.2%. In addition to this, the BBC anticipates the UK's jobless rate to fall below 7% by the third quarter of 2015.
The CEO of Recruitment & Employment Confederation, Kevin Green optimistically contemplates the future of the UK labour market, predicting a noticeable upturn, which will benefit British business, the UK economy and all people looking for work in 2014.
“We enter the New Year with job vacancies increasing at the fastest pace in 15 years. The fact that our figures show starting salary growth hitting a six year high, combined with continued skill and talent shortages, indicates that we can expect salaries to increase and job fluidity to accelerate into 2014".
On the whole, as 2013 draws to a close, it seems that there are real signs of recovery in the UK job market, with businesses feeling more confident entering the New Year and seeking to expand their man power further.