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 staff placements rise for first time in five months Key findings: Permanent placements rise modestly Temp billings increase at quickest pace for 14 months Salary inflation quickens to five-month high 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. March 17 According to the latest Markit Report on Jobs for land, recruitment consultancies recorded the first increase in permanent placements for five months during February, although the pace of increase was only modest. Meanwhile, billings received from temporary/contract workers rose at the quickest extent for 14 months and salary inflation strengthened to a five-month record. Renewed increase in permanent placements February survey data pointed to the first rise in the number of people placed in permanent jobs by recruitment consultancies in land since September last year. That said, the rate of increase was only modest and was weaker than the wide trend. Meanwhile, tish recruitment consultancies recorded a sharper increase in temporary staff billings, the most marked since December 15. Pay growth quickens Starting salaries for staff placed in permanent jobs in land rose further in February, continuing a trend which has been observed for the past four years. The increase was the most marked for five months but slightly weaker than the average. Meanwhile, hourly rates of pay for temporary workers also rose and at a pace which was faster than at the start of the year. Steep fall in candidate availability One factor leading firms to improve their pay packets was a lack of available candidates for vacant positions in February. Declines in staff availability were evident for both permanent and temporary job roles. In fact, the latest fall in short-term candidate availability was the fastest seen in a year. Demand for staff rises at faster pace A rise in demand for permanent staff in land was reported in February, with the rate of growth accelerating to a two-year high. That said, the latest increase remained weaker than the rise seen across the as a whole. Demand for temporary workers also increased in February and at a rate that was the strongest for 26 months. The latest increase continues the trend of rising demand which has been observed in every month since October 09. Sector data showed staff demand was strongest for Nursing/Medical/Care for both permanent and temporary roles. 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 February 17 1 Nursing/Medical/Care 2 IT & Computing 3 Engineering & Construction 4 Hotel & Catering 5 Accounts & Financial 6 Secretarial & Clerical 7 Executive & Professional 8 Blue Collar DEMAND FOR TEMP/CONTRACT STAFF Types of staff ranked by strength of demand in land in February 17 1 Nursing/Medical/Care 2 Engineering & Construction 3 Accounts & Financial 4 IT & Computing 5 Hotel & Catering 6 Secretarial & Clerical 7 Blue Collar 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? Renewed increase in permanent placements. February saw a rebound in the number of people placed in permanent jobs by land-based recruitment consultancies, thereby ending a fourmonth period of decline. This was highlighted by the corresponding seasonally adjusted index posting above the.0 no-change mark. Across the as a whole, permanent placements increased at the quickest pace for one year and was marked in comparison to the long-run average. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Sep Oct Nov Dec Jan Feb Temporary/Contract Staff Billings Q. Are average weekly billings from temporary/contract staff higher, the same or lower than one month ago? Stronger growth in temp billings. Average weekly billings from temporary/contract staff rose for a third successive month in land during February. In fact, the rate of increase accelerated to the fastest since December 15 and outstripped the average for the first time since July last year. Survey data collected in February also pointed to a further marked increase in temp billings at the level. That said, the rise was the weakest in four months. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Sep Oct Nov Dec Jan Feb All Intellectual Property Rights owned by IHS Markit

3 March 17 2 Vacancies Demand for Permanent Staff at recruitment/employment consultancies Growth in permanent staff demand strengthens. 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. Recruiters operating in land reported a further marked increase in demand for permanent staff during February. After having remained broadly unchanged in the previous month, the rate of growth accelerated to a two-year high. However, the sharper increase in demand was still weaker than that seen for the as a whole, which rose at a quicker pace for the fifth successive month. By sector, Nursing/Medical/Care saw by far the strongest increase in demand for permanent staff in land, while the weakest rise was reported for Blue Collar jobs. = no change on previous month Bars: land Line: land All Index S.Adj. Index S. Adj. = no chg Index = no chg Index 16 Aug Sep Oct Nov Dec Jan Feb Demand for Temporary Staff at recruitment/employment consultancies Demand for temporary staff hits 26-month high. 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. Latest survey data highlighted an uptick in demand for temporary staff in land, continuing a trend which has been observed since November 09. In fact, demand for short-term staff hit a 26-month high. Growth in temporary job openings across the as a whole remained sharper than that recorded in land, with the rate of increase accelerating to its most marked since July 15. Of the job categories monitored by the survey, Nursing/Medical/Care temporary roles recorded the steepest rise in demand, followed closely by Engineering & Construction. = no change on previous month Bars: land Line: land All Index S.Adj. Index S. Adj. = no chg Index = no chg Index 16 Aug Sep Oct Nov Dec Jan Feb

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. Broad-based rise in permanent staff demand......led by 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 Sep' Oct Nov Dec Jan' Feb February survey data showed stronger demand growth for permanent staff in six out of the eight monitored sectors, while only one jobs category - Blue Collar - reported a weaker rate of increase than in January. Sectors ranked by demand for permanent staff in land in February 17 Rank Sector Index 1 Nursing/Medical/Care IT & Computing Engineering & Construction Hotel & Catering Accounts & Financial Secretarial & Clerical Executive & Professional.8 8 Blue Collar 51.6 As has been the case in five of the past six months, the sharpest overall rise in demand for permanent staff in land was recorded in the Nursing/ Medical/Care sector. The rate of growth was also marked in comparison to the next strongest-increase, for IT & Computing staff. Engineering & Construction saw a substantial increase in demand for permanent staff which was unchanged since the previous month, while Hotel & Catering and Accounts & Financial both experienced a pick-up in demand since January. Stronger rises in permanent staff demand were also recorded across Secretarial & Clerical and Executive & Professional. All Intellectual Property Rights owned by Markit

5 March 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. Temp staff demand rises in all categories. = no change on previous month IT & Computing Executive & Professional = no change on previous month 100 Nursing/Medical/Care 90 Hotel & Catering Demand strongest in Nursing/ Medical/Care and Engineering & Construction. 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 Sep' Oct Nov Dec Jan' Feb Recruitment firms in land reported a broad-based upturn in temporary staff demand in February, as all eight monitored categories recorded an increase. Moreover, seven of the eight sectors recorded a stronger rate of Sectors ranked by demand for temp/contract staff in land in February 17 Rank Sector Index 1 Nursing/Medical/Care Engineering & Construction Accounts & Financial IT & Computing Hotel & Catering.1 6 Secretarial & Clerical.1 7 Blue Collar Executive & Professional 51.5 demand growth than in January, with the exception being Hotels & Catering, which experienced a slight weakening. In line with the trend for permanent roles, the strongest rise in demand for temp staff occurred in the Nursing/ Medical/Care sector, closely followed by Engineering & Construction. Meanwhile, Accounts & Financial, IT & Computing and Secretarial & Clerical all experienced a marked increase in demand. Notably, demand for temporary Executive & Professional staff in land increased in February, bringing to an end a 16-month period of decline. However, the rate of demand growth was marginal and the weakest of all the monitored sub-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 staff availability drops sharply. Continuing a trend which has been observed for the past five years, the availability of candidates for permanent vacancies in land declined again during February. This was highlighted by the respective seasonally adjusted Index remaining below the.0 nochange threshold. At the level, a sharp and accelerated decrease in the availability of candidates for permanent job openings was recorded midway through the first quarter. In fact, the rate of decline was the strongest for 13 months. = no change on previous month Bars: land Line: Improving availability Deteriorating availability land All % % % +/- = no chg Index = no chg Index 16 Sep Oct Nov Dec Jan Feb Availability of Temporary/Contract Staff Q. Is the availability of candidates for temporary vacancies better, the same or worse than one month ago? Renewed fall in supply of shortterm staff. The availability of candidates for temporary vacancies in land declined in February after having stabilised in the opening month of the year. Moreover, the rate of decrease was the quickest for one-year despite being weaker than that seen at the level. Temporary candidate availability continued to worsen across the as a whole in February, lengthening the current sequence of decline to 44 months in a row. = no change on previous month Improving availability Bars: land 75 Line: Deteriorating availability land All % % % +/- = no chg Index = no chg Index 16 Sep Oct Nov Dec Jan Feb All Intellectual Property Rights owned by IHS Markit

7 March 17 6 Pay pressures Permanent Salaries Q. Are average salaries for permanent staff higher, the same or lower than one month ago? Salary inflation reaches fivemonth peak. Salaries for people placed in permanent roles in land continued to rise during February, extending the current sequence of increase to four successive years. In fact, wages grew at the sharpest pace since September last year and was marked in comparison to the long-run series average. Meanwhile, at the level, salaries for permanent starters increased at a sharper pace for a second successive month and was stronger than that seen north of the border. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Sep Oct Nov Dec Jan Feb 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 pay continues to increase. Adjusted for the impact of seasonal factors, hourly rates of pay for temporary staff increased at a marked and accelerated pace midway through the first quarter of the year. Around 14% of panel members experienced an increase in temp wages during the month, in comparison to only 2% that recorded a decline. There was a slight uptick in shortterm staff hourly pay rates at the level, which was broadly in line with that seen in land. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Sep Oct Nov Dec Jan Feb

8 Markit Report on Jobs: land 7 regional summary The number of people claiming out-of-work benefits in the stood at 7,000 at the start of 17, according to the latest data from the Office for National statistics. Notably, the number of people claiming unemployment-related benefits was down by 42,0 since December. The unemployment rate meanwhile remains unchanged at 4.8% in the three months to December, the lowest for over ten years. A regional breakdown of claimant count data revealed that the Southern regions had the lowest claimant count rates, with the South East (1.2%) and South West (1.3%) at the top of the league table in January. These were ahead of the East of England (1.5%) and East Midlands (1.8%), and lower than the claimant count rate seen in London (2.0%). land s unemployment rate was 2.7% during the opening month of 17, with the number of people claiming unemployment-related benefits standing at 76,000. Claimant counts (Jan 17) Region 000s Rate (%)* Rank South East (1) South West (2) East (3) East Midlands (4) London (5) Yorks & Humberside (6) Wales (6) NW & Merseyside (8) land (8) West Midlands 2.8 (10) 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 IHS Markit

Markit UK Report on Jobs: Scotland

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