Jobs growth sharpest since June, says new report

Salaries across the UK showed marked growth in October while the number of permanent and temporary jobs continued to rise, according to new data.

The latest Report on Jobs, compiled by professional services firm KPMG and the Recruitment and Employment Confederation (REC), found that growth in the total number of permanent jobs filled was the sharpest since June.

While the report also highlighted a notable increase in the number of temporary posts available, growth in permanent positions was greater.

The chief executive of the REC, Kevin Green, said: “The jobs-rich recovery looks set to continue, with more people being placed into permanent positions last month and businesses across the UK creating more vacancies.

“However, there remains a big question about sustainability. Employers report an increasing number of skills shortage areas in both the public and the private sector. Starting salaries continue to rise as businesses battle to attract the people they need but it’s unclear how much longer this trend can continue.”

He added: “The government must focus on alleviating the skills crisis which threatens economic growth. We need a balanced approach to immigration so that businesses can bring in the people they need right now.

“Domestically, young people must be better incentivised to acquire the knowledge and skills that are needed most by hirers. A real commitment to delivering world-class careers advice and work experience would be a big step in the right direction.”

The accounting and financial sector saw the sharpest rise in demand for staff, while hospitality demonstrated the weakest growth. Elsewhere, skills shortages in the construction sector were found to be driving up salaries.

KPMG partner Bernard Brown commented: “While hiring continued at pace across most areas of the economy, the figures point to a worrying development in the construction sector.

“It is clear the industry is suffering from a chronic skills shortage along its entire supply chain, with recruiters struggling to meet demand for roles ranging from architects to construction workers.”

He added: “As a result salaries in the sector are soaring, with the average weekly rise reaching 5.1%, vastly outpacing the private sector average of 3.4%.”

Businesses, he went on to say, want to see the shortage of skilled workers addressed in the upcoming Autumn Statement with a strategy to boost apprenticeships and encourage the launch of SME building firms.

Mr Brown concluded: “By addressing this crucial capacity issue and rebalancing the industry away from the bigger developers, Britain can build the skills base it needs.”