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. January sees further fall in permanent placements Key findings: Permanent placements decline further while temp billings increase Slower rises in demand for both permanent and temporary staff Salary growth quickens 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. February 17 land s labour market conditions continued to deteriorate in the opening month of 17, according to the latest Report on Jobs, as recruitment consultancies reported a further marked decline in permanent placements. Salary growth picked up at a robust pace yet availability of permanent staff decreased further. On the temporary job side, a strengthening in contract staff billing was recorded and wages rose again, albeit at a slower rate. Marked drop in permanent placements Survey data collected during January showed a substantial decline in the number of people placed into permanent jobs. The rate of contraction was broadly in-line with December s 90-month record. However, the trend in land diverged from that across the level, were jobs growth was evident at a marked pace. In contrast, billings received by consultancies from the employment of temporary staff rose at the sharpest pace for 13 months. However, the rate of increase was only slightly faster than the long-run series average. Salary growth quickens Salary inflation accelerated in January, picking up since December s 46-month low. That said, the rate of wage growth for permanent placements remained weaker than the average across the. Meanwhile, hourly rates of pay for temporary staff rose during the month, but the pace of wage inflation eased to the weakest since October 16. Candidate availability declines further tish recruiting companies reported a substantial decline in the availability of candidates for permanent vacancies during January. However, the rate of decrease softened since the end of 16 and was weaker than the average. The availability of temporary staff in land remained unchanged during January, following a slight decline recorded in December. Higher demand for staff reported The number of permanent job vacancies in land increased further in January. However, the pace of growth remained relatively marked, but weakened for a third successive month. The rise in demand for temp jobs also eased to a five-month low. Nursing/Medical/Care saw the sharpest rise in demand for both permanent and temp staff. 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 January 17 1 Nursing/Medical/Care 2 Engineering & Construction 3 IT & Computing 4 Hotel & Catering 5 Secretarial & Clerical 6 Executive & Professional 7 Blue Collar 8 Accounts & Financial DEMAND FOR TEMP/CONTRACT STAFF Types of staff ranked by strength of demand in land in January 17 1 Nursing/Medical/Care 2 Engineering & Construction 3 Hotel & Catering 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 decline in permanent staff placements. The start of 17 saw another marked reduction in the number of people placed in permanent jobs by recruitment consultancies in land. Moreover, the rate of decline was littlechanged from December s 90-month record. Falling placements have now been evident in each of the past four months. Concurrently, permanent appointments across the as a whole grew at a solid pace. That said, it was the weakest increase since September. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Aug Sep Oct Nov Dec Jan Temporary/Contract Staff Billings Q. Are average weekly billings from temporary/contract staff higher, the same or lower than one month ago? Upturn in contract staff billings strengthens. Recruitment consultancies in land recorded a marked increase in average weekly billings from temporary staff in January. In fact, the rate of increase accelerated to a 13-month high and was fractionally stronger than the long-run series average. Temporary bills across the also experienced a substantial increase. However, growth eased slightly since the end of 16. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Aug Sep Oct Nov Dec Jan All Intellectual Property Rights owned by IHS Markit

3 February 17 2 Vacancies Demand for Permanent Staff at recruitment/employment consultancies Growth in demand for permanent staff unchanged. 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. Demand for permanent staff north of the border continued to rise in the opening month of 17. Although the pace of increase weakened for a third successive month, it remained marked overall and was little-changed since the end of last year. land continued to underperform against the as a whole, however, which recorded its sharpest rise in permanent staff demand since August 15. Nursing/Medical/Care saw the strongest rise in demand for permanent staff at the tish sector level, while demand was reduced for Accounts & Financials. = no change on previous month Bars: land Line: land All Index S.Adj. Index S. Adj. = no chg Index = no chg Index 16 Jul Aug Sep Oct Nov Dec Jan Demand for Temporary Staff at recruitment/employment consultancies Slower rise in demand for temp staff. 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. The number of temporary job vacancies in land increased at the weakest rate for five months during January. Moreover, the rate of growth was weak in the context of historical data. Growth in demand for temporary staff in land again remained below the average, lengthening a trend which has been observed since March 16. land s best-performing jobs category in terms of demand for temporary staff was Nursing/Medical/ Care, followed by Engineering & Construction. In contrast, Executive and professionals registered the steepest decrease. = no change on previous month Bars: land Line: land All Index S.Adj. Index S. Adj. = no chg Index = no chg Index 16 Jul Aug Sep Oct Nov Dec Jan

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. Demand for permanent staff growth fastest at Nursing/ Medical/Care. = no change on previous month 90 IT & Computing Executive & Professional = no change on previous month 90 Nursing/Medical/Care Hotel & Catering Further decline in Accounts & Financial vacancies. Accounting & Financial 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 Aug' Sep Oct Nov Dec Jan' Survey data collected at the start of 17 signalled stronger demand for permanent staff in land at all but one monitored sector. The exception was the Accounts & Financial job category, where demand decreased for Sectors ranked by demand for permanent staff in land in January 17 Rank Sector Index 1 Nursing/Medical/Care Engineering & Construction IT & Computing Hotel & Catering Secretarial & Clerical Executive & Professional Blue Collar Accounts & Financial 49.1 a second successive month, albeit at a weaker pace than in December. Demand for Nursing/Medical/Care jobs was the strongest out of all eight sectors. The rate of rise was substantial and quickened since December. Engineering & Construction, the second-ranked sector, also recorded a faster increased in permanent job vacancies, along with Secretarial & Clerical and Executive & Professional. Out of the remaining sectors, IT & Computing, Hotel & Catering and Blue Collar all recorded further, albeit weaker, increases in permanent staff demand. In fact, Hotel & Catering and Engineering & Construction were the only sectors to see growth sharper in land than across the -wide level. All Intellectual Property Rights owned by Markit

5 February 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. Nursing/ Medical/Care retains strongest temp staff demand. = no change on previous month IT & Computing Executive & Professional = no change on previous month 100 Nursing/Medical/Care 90 Hotel & Catering Accounting & Financial Engineering & Construction Solid drop in Executive & Professional temp openings. 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 Aug' Sep Oct Nov Dec Jan' Matching the trend for permanent roles, demand for temp Nursing/Medical/Care staff was the strongest out of all eight monitored tish sectors at the start of 17. The extent to which demand for contract staff increased eased further Sectors ranked by demand for temp/contract staff in land in January 17 Rank Sector Index 1 Nursing/Medical/Care Engineering & Construction.3 3 Hotel & Catering IT & Computing Blue Collar Accounts & Financial.4 7 Secretarial & Clerical Executive & Professional 47.3 from November s 23-month peak, yet was still substantial. The second-best performing category was Engineering & Construction jobs, were temporary job openings increased at the fastest rate since August 14. Elsewhere, Hotels & Catering experienced a marked slowdown in demand for temporary staff. However, the rise remained stronger than at the level. Growth in demand for permanent staff was also evidence in IT & Computing, Blue Collar and Accounts & Financial. Meanwhile, Secretarial & Clerical and Executive & Professional were the only sectors to see demand for temp staff decrease.

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? Substantial drop in permanent candidate availability. Recruiting companies operating in land reported a further substantial decrease in the availability of candidates for permanent vacancies at the beginning of 17. Although the rate of decline eased since December, it remained weaker than the long-run series average. There was also a marked deterioration in permanent candidate availability at the level. The rate of decline was substantial and lengthened the current sequence to months. = no change on previous month Bars: land Line: Improving availability Deteriorating availability land All % % % +/- = no chg Index = no chg Index 16 Aug Sep Oct Nov Dec Jan Availability of Temporary/Contract Staff Q. Is the availability of candidates for temporary vacancies better, the same or worse than one month ago? Temp candidate numbers unchanged in January. Adjusted for seasonal factors, survey data for January pointed to an unchanged level of availability for temporary vacancies in land. The stabilisation followed a slight decline reported at the end of 16. Across the as a whole, the availability of temporary job candidates decreased further during the opening month of 17. However, the rate of decline eased to the weakest for three months. = no change on previous month Improving availability Bars: land 75 Line: Deteriorating availability land All % % % +/- = no chg Index = no chg Index 16 Aug Sep Oct Nov Dec Jan All Intellectual Property Rights owned by IHS Markit

7 February 17 6 Pay pressures Permanent Salaries Q. Are average salaries for permanent staff higher, the same or lower than one month ago? Salary inflation quickens. January saw a further increase in average starting salaries for permanent staff in land. Moreover, the rate of inflation quickened since the end of last year and was marked overall. Adjusted for seasonal variance, the respective index has posted above the.0 no-change mark in every month since March 13. The rise in permanent salaries north of the border was less marked than that seen across the as a whole, where the rate of inflation picked up to a nine-month high. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Aug Sep Oct Nov Dec Jan 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? Slowest rise in temp pay for three months. Latest survey data pointed to a further marked increase in contract staff hourly pay rates in land, the twenty-second consecutive month that this has been the case. That said, the rate of pay growth eased since December and was weaker than the average. Temp wage growth at the level also slowed at the start of 17, although to a lesser extent than in land. However, hourly pay rates in the still rose at a substantial pace overall. = no change on previous month Bars: land Line: land All % % % +/- = no chg Index = no chg Index 16 Aug Sep Oct Nov Dec Jan

8 Markit Report on Jobs: land 7 regional summary Latest figures from the Office for National Statistics showed a decline in the number of people claiming out-of-work benefits across the. The decrease was marked (-10,1), and ended a fourmonth sequence of rising claims. Moreover, the corresponding claimant count rate was unchanged at 2.3%. The tightest jobs market remained that in the South East of England with an unemployment rate of just 1.3%. Moreover, the South West was not too far behind, recording a 1.4% unemployment rate at the end of last year. That contrasted with a 4.1% unemployment rate in the North East of England, the highest out of all the regions. land s unemployment rate was 2.9% in the final month of 16, with the number of people claiming Jobseeker s Allowance falling by -18, the largest drop since January 16. Claimant counts (Dec 16) Region 000s Rate (%)* Rank South East (1) South West (2) East 1.6 (3) East Midlands 1.9 (4) London (5) Yorks & Humberside (6) Wales (6) land (8) NW & Merseyside (8) West Midlands (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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