Markit UK Report on Jobs: Scotland

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1 Markit Report on Jobs: land The Markit Report on Jobs: land is a publication produced by Markit. The report is designed to provide the most up-to-date picture of labour market trends in land. The report is based on a monthly questionnaire survey of around 100 recruitment and employment agencies operating in land. The report uses an identical methodology to the highly regarded survey of recruitment consultancies conducted by Markit on behalf of the REC. Permanent placements fall at fastest rate since mid-09 Key findings: Drop in permanent appointments contrasts with growth in temp billings Salary inflation slows to weakest in almost four years Permanent and temporary candidate numbers decline For further information please contact: Markit Economics Henley on Thames Oxon, RG9 1HG, Tel: Fax: Copies of the report are available on annual subscription from Markit. For subscription details please contact: 1 Employment 2 Vacancies 3 Sectoral demand: perm 4 Sectoral demand: temp 5 Staff availability 6 Pay pressures 7 regional summary The intellectual property rights to the Report on Jobs for land provided herein is owned by or licensed to IHS Markit. Any unauthorised use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing is not permitted without IHS Markit s prior consent. IHS Markit shall not have any liability, duty or obligation for or relating to the content or information ( data ) contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Markit be liable for any special, incidental, or consequential damages, arising out of the use of the data. IHS Markit is a registered trade mark of IHS Markit Ltd. January 17 December saw the steepest decrease in the number of people placed in permanent jobs by tish recruitment consultancies for sevenand-a-half years, according to the latest Markit Report on Jobs. Meanwhile, growth in permanent salaries slowed sharply, falling further behind the average. There was a more positive picture across the temporary jobs market, however, as a strong increase in hourly pay rates supported a return to growth in billings received by consultancies from contract staff. Permanent placements continue to fall Continuing the trend seen throughout the final quarter of 16, tish recruitment agencies recorded a drop in permanent placements in December. Following back-to-back marginal decreases, the rate of decline picked up to the fastest seen since June 09. That contrasted with further, albeit slightly slower, growth in permanent placements across the as a whole. Meanwhile, recruiters north of the border noted a rise in billings received from temporary staff for the first time in four months. Salary growth at 46-month low One factor that contributed to the resumption of growth in billings was a strong rise in hourly rates of pay for temporary staff. Temp wage inflation was in fact the fastest since May 16, matching the trend seen at the level. However, there was a sharp slowdown in growth of permanent salaries, which rose at the weakest rate seen for almost four years. Candidate availability worsens Recruiters recorded a marked and accelerated drop in the availability of candidates for permanent jobs in December, the sharpest since August. They also noted a fractional reduction in the availability of candidates for temporary jobs, thereby ending a six-month sequence of improvement. Growth in demand for staff slows December s survey signalled ongoing growth in demand for permanent staff among tish businesses, although the rate of increase was at a four-month low. Temp vacancies also rose at a slightly slower pace. By sector, the strongest increases in demand were recorded in Hotel & Catering, Nursing/ Medical/Care and Engineering & Construction. Summary of survey indicators PERMANENT Permanent placements Demand for permanent staff TEMPS Index, = no change on previous m onth Permanent salaries Availability of permanent staff Temp billings Demand for temporary staff Temp pay rates Availability of temporary staff D ecrease In crease DEMAND FOR PERMANENT STAFF Types of staff ranked by strength of demand in land in December 16 1 Hotel & Catering 2 Nursing/Medical/Care 3 Engineering & Construction 4 IT & Computing 5 Blue Collar 6 Secretarial & Clerical 7 Executive & Professional 8 Accounts & Financial DEMAND FOR TEMP/CONTRACT STAFF Types of staff ranked by strength of demand in land in December 16 1 Nursing/Medical/Care 2 Hotel & Catering 3 Engineering & Construction 4 IT & Computing 5 Blue Collar 6 Accounts & Financial 7 Secretarial & Clerical 8 Executive & Professional

2 Markit Report on Jobs: land 1 Employment Permanent Staff Placements Q. Is the number of people placed in permanent jobs higher, the same or lower than one month ago? Marked drop in permanent placements. December saw a solid and accelerated decrease in the number of people placed in permanent jobs by tish recruitment consultancies. The reduction was the third in as many months and the most marked since June 09. In contrast, the as a whole saw a further rise in permanent staff appointments, with the rate of growth easing only slightly from November s nine-month high. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Jul Aug Sep Oct Nov Dec Temporary/Contract Staff Billings Q. Are average weekly billings from temporary/contract staff higher, the same or lower than one month ago? Temp billings return to growth. Recruitment consultancies operating in land recorded an increase in average weekly billings received from temporary/contract staff in December, marking a return to growth after three consecutive months of contraction. That said, the rate of expansion north of the border was notably slower than that seen at the level, where temp billings showed a sharp and accelerated increase that was the fastest since last April. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Jul Aug Sep Oct Nov Dec All Intellectual Property Rights owned by Markit

3 January 17 2 Vacancies Demand for Permanent Staff at recruitment/employment consultancies Slower growth in permanent staff demand. The Vacancy Index, shown by the bars in the chart on the right, is derived from the sectoral indexes of the demand for permanent staff at recruitment consultancies (shown on page 4). The Permanent Staff Vacancy Index is a weighted average of the eight individual sector indexes. The line in the chart shows the comparable index for the as a whole. Although demand for permanent staff continued to rise in land during the final month of 16, the rate of growth slowed. This was shown by the respective seasonally adjusted index dipping to its lowest level since August, down for the second month in succession. Furthermore, in line with the trend seen throughout the final quarter of 16, growth in demand for permanent staff north of the border remained slower than the average. By sector, the strongest increase in permanent vacancies was in Hotel & Catering, according to land s recruiters. = no change on previous month Bars: land Line: land All Index S.Adj. Index S. Adj. = no chg Index = no chg Index 16 Jun Jul Aug Sep Oct Nov Dec Demand for Temporary Staff at recruitment/employment consultancies Temp vacancies continue to rise. The Vacancy Index, shown by the bars in the chart on the right, is derived from the sectoral indexes of the demand for temporary and contract staff (shown on page 5). The Temporary Staff Vacancy Index is a weighted average of the eight individual sector indexes. The line in the chart shows the comparable index for the overall. December s survey showed ongoing growth in temporary job vacancies across land, and despite having eased to a three-month low, the rate of increase remained strong and slightly above the average for 16 as a whole. There was an identical trend seen at the level, with growth in demand for temporary staff the lowest since September but remaining marked overall. Nursing/Medical/Care saw the steepest increase in temporary job openings north of the border, while Executive & Professional and Secretarial & Clerical both recorded lower vacancy numbers. = no change on previous month Bars: land Line: land All Index S.Adj. Index S. Adj. = no chg Index = no chg Index 16 Jun Jul Aug Sep Oct Nov Dec

4 Markit Report on Jobs: land 3 Permanent Sectoral demand permanent vacancies Data below are derived from the monthly survey of recruitment consultancies in land. Consultants are requested to compare the demand for staff according to sector with the situation one month ago. Data are presented in the form of diffusion indices whereby a reading of indicates no change on the previous month. Readings above signal stronger demand than a month ago. Readings below signal weaker demand than a month ago. Hotel & Catering leads growth in permanent staff demand......ahead of Nursing/ Medical/Care. = no change on previous month 90 IT & Computing Executive & Professional Accounting & Financial = no change on previous month 90 Nursing/Medical/Care Hotel & Catering Engineering & Construction Secretarial & Clerical Blue Collar Demand for permanent staff (Seasonally adjusted, = no change on previous month) IT & Executive & Accounts & Secretarial Nursing/ Hotel & Engineering & Blue Computing Professional Financial & Clerical Medical/Care Catering Construction Collar Jul' Aug Sep Oct Nov Dec Hotel & Catering led demand for permanent staff in December, however it was one of only two sectors (the other being Secretarial & Clerical) where the rate of growth picked up from the month before. Sectors ranked by demand for permanent staff in land in December 16 Rank Sector Index 1 Hotel & Catering Nursing/Medical/Care Engineering & Construction IT & Computing Blue Collar.1 6 Secretarial & Clerical Executive & Professional.0 8 Accounts & Financial 47.6 The latest rise in Hotel & Catering vacancies was the strongest for seven months. Nursing/Medical/Care, which was ranked second overall (see table), also saw a steep increase in permanent job openings, though the rate of growth was at a four-month low. Slower increases were also registered in the Engineering & Construction (ninemonth low), IT & Computing (11-month low) and Blue Collar categories (threemonth low). Growth of demand in the Secretarial & Clerical sector was at a nine-month high, albeit only modest. Executive & Professional permanent job vacancies were unchanged, while Accounts & Financial saw a fall, the first in over three-and-a-half years. All Intellectual Property Rights owned by Markit

5 January 17 4 Temporary/contract Sectoral demand temporary vacancies Data below are derived from the monthly survey of recruitment consultancies in land. Consultants are requested to compare the demand for staff according to sector with the situation one month ago. Data are presented in the form of diffusion indices whereby a reading of indicates no change on the previous month. Readings above signal stronger demand than a month ago. Readings below signal weaker demand than a month ago. Demand for temp staff rises in six out of eight sectors. = no change on previous month IT & Computing Executive & Professional = no change on previous month 100 Nursing/Medical/Care 90 Hotel & Catering Executive & Professional sees steepest fall. Accounting & Financial Engineering & Construction Secretarial & Clerical Blue Collar Demand for temporary/contract staff (Seasonally adjusted, = no change on previous month) IT & Executive & Accounts & Secretarial Nursing/ Hotel & Engineering & Blue Computing Professional Financial & Clerical Medical/Care Catering Construction Collar Jul' Aug Sep Oct Nov Dec Demand for temporary staff increased in six out of the eight jobs categories monitored by the survey in December, led by strong growth in Nursing/Medical/ Care and Hotel & Catering sectors. In the case of the latter, the latest increase Sectors ranked by demand for temp/contract staff in land in December 16 Rank Sector Index 1 Nursing/Medical/Care Hotel & Catering Engineering & Construction IT & Computing Blue Collar Accounts & Financial.5 7 Secretarial & Clerical Executive & Professional 46.5 in vacancies was the strongest for eight months. Engineering & Construction, which was ranked third overall, also saw a steep rise in temporary job openings the sharpest since August. Further increases in temporary staff demand were seen across the IT & Computing and Blue Collar sectors, although rates of growth eased to the weakest for four and three months respectively. Accounts & Financial recorded only a marginal rise in temporary vacancies for the second month in a row in December, while the number of job openings decreased across both the Executive & Professional and Secretarial & Clerical sectors.

6 Markit Report on Jobs: land 5 Staff availability Availability of Permanent Staff Q. Is the availability of candidates for permanent vacancies better, the same or worse than one month ago? Permanent candidate numbers remain in decline. The availability of candidates for permanent vacancies decreased sharply in December, with the rate of decline the fastest seen since August. Over 36% of recruiters noted a reduction in permanent candidate numbers, compared to 14% reporting an increase. Furthermore, for the first time since last July, land s decrease in permanent candidate availability was more marked than that seen across the as a whole. = no change on previous month Bars: land Line: Improving availability Deteriorating availability land All % % % +/- = no chg Index = no chg Index 16 Jul Aug Sep Oct Nov Dec Availability of Temporary/Contract Staff Q. Is the availability of candidates for temporary vacancies better, the same or worse than one month ago? Temp availability falls for first time in seven months. Latest data showed a reduction in the availability of candidates for temporary vacancies, thereby ending a six-month sequence of improvement. That said, the extent to which temp candidate numbers decreased was only marginal, as shown by the respective seasonally adjusted index registering close to the neutral.0 mark. The rate of decline at the level was much stronger in comparison, having accelerated for the second month running to the fastest since August. = no change on previous month Improving availability Bars: land 75 Line: Deteriorating availability land All % % % +/- = no chg Index = no chg Index 16 Jul Aug Sep Oct Nov Dec All Intellectual Property Rights owned by Markit

7 January 17 6 Pay pressures Permanent Salaries Q. Are average salaries for permanent staff higher, the same or lower than one month ago? Salary inflation at 46-month low. Growth of permanent starting salaries eased sharply in December, down to the weakest in almost four years. The rate of increase was also comfortably slower than seen on average since the survey s inception in January 03. Recruitment consultancies across the as a whole likewise recorded a slowdown, with permanent salaries rising at the second-weakest rate since July 13 (behind last July s recent low), albeit more quickly than in land. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Jul Aug Sep Oct Nov Dec Temporary/Contract Staff Hourly Pay Rates Q. Are average hourly rates of pay for temporary and contract staff higher, the same or lower than one month ago? Temp wage growth accelerates. In contrast to the trend observed for permanent salaries, growth in hourly rates of pay for temporary staff accelerated in the final month of 16. The rate of inflation was sharp in the context of historical survey data, having quickened throughout the fourth quarter. The upturn in land was in line with the pattern for the as a whole, with temp wage inflation at its highest since May 16 the month that followed the introduction of the National Living Wage. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Jul Aug Sep Oct Nov Dec

8 Markit Report on Jobs: land 7 regional summary November saw a rise in the number of people claiming out-of-work benefits across the, according to latest labour market data from the Office for National Statistics (ONS). Claimant numbers have now increased in eight of the past nine months, reaching the highest level since February 15. The latest rise (+2,4) was the slowest for four months, however. The corresponding claimant count rate* remained at 2.3%, as has been the case since August. The lowest claimant rate at the regional level was the South East s 1.3%, which was unchanged since October and slightly lower than that seen in the South West (1.4%). The North East recorded the highest claimant rate at 4.1%, followed by Northern Ireland s 3.7%. land registered the joint third-highest rate at 3.0%, alongside the North West and West Midlands, as claimant numbers north of the border showed only a marginal fall (-1). Claimant counts (Nov 16) Region 000s Rate (%)* Rank South East (1) South West (2) East 1.6 (3) East Midlands (4) London (5) Yorks & Humberside (6) Wales (6) land (8) NW & Merseyside (8) West Midlands (8) Northern Ireland (11) North East (12) United Kingdom Source: Department for Work & Pensions and National Statistics. Survey methodology The Markit Report on Jobs: land Survey The Markit Report on Jobs: land survey of recruitment and employment consultancies is based on information provided by a panel of around 100 consultancies operating in land. Data are collected monthly and converted into a seasonally adjusted series. Markit do not revise underlying survey data after first publication, but seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series. The information from the survey panel is also used in the compilation of the REC monthly survey for the, which appears in the monthly Report on Jobs and which uses an identical survey methodology. (The contribution of the land data to the data is weighted to reflect land s share of the total labour market.) The REC Survey The monthly survey features original research data collected via questionnaire by Markit from a panel of 0 recruitment and employment consultancies. In 13/14, 1,1,932 people were employed in either temporary or contract work through consultancies and 634,8 people were placed in permanent positions through consultancies. Monthly survey data were first collected in October 1997 and are collected in the end of each month, with respondents asked to specify the direction of change in a number of survey variables. Markit do not revise underlying survey data after first publication, but seasonal adjustment factors may be revised from time to time as appropriate which will affect the seasonally adjusted data series. Index numbers Index numbers shown in the report are calculated from the percentages of respondents reporting an improvement, no change or decline. These indices vary between 0 and 100 with readings of exactly.0 signalling no change on the previous month. Readings above.0 signal an increase or improvement; readings below.0 signal a decline or deterioration. Reasons given by survey respondents for any changes are analysed to provide insight into the causes of movements in the indices. REC and IHS Markit The Recruitment and Employment Confederation Jobs transform lives, which is why we are building the best recruitment industry in the world. As the professional body for recruitment we re determined to make businesses more successful by helping them secure the people they need. We are absolutely passionate and totally committed in this pursuit for recruiters, employers, and the people they hire. Find out more about the Recruitment & Employment Confederation at IHS Markit IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and expertise to forge solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than,000 key business and government customers, including 85 percent of the Fortune Global 0 and the world s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth. IHS Markit is a registered trademark of IHS Markit Ltd. All other company and product names may be trademarks of their respective owners 17 IHS Markit Ltd. All rights reserved. About PMI Purchasing Managers Index (PMI ) surveys are now available for over countries and also for key regions including the eurozone. They are the most closely-watched business surveys in the world, favoured by central banks, financial markets and business decision makers for their ability to provide up-to-date, accurate and often unique monthly indicators of economic trends. For more information All Intellectual Property Rights owned by Markit

Markit UK Report on Jobs: Scotland

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