Job surge in North of England as hires grow at “fastest rate ever recorded”

A new report has shown that there has been a surge in job creation across the North in June.

The latest KPMG and REC, UK Report on Jobs: North of England survey signalled a further surge in hiring activity across the North of England last month.

The report showed that permanent staff placements grew at the fastest rate ever recorded, while temp billings expanded sharply and for the twelfth successive month. Meanwhile, a strong appetite for new staff was indicated by a survey-record rise in permanent job vacancies, while demand for temp workers rose substantially.

However, both permanent and temporary staff availability deteriorated at record rates, leading to sharp upward pressure on starting pay.

The report, which is compiled by IHS Markit, is based on responses to questionnaires sent to around 100 recruitment and employment consultancies in the North of England.

Ian Beaumont, office senior partner for KPMG in Newcastle, commented: “It’s great to see another rise in permanent placements in June as the loosening of restrictions boosted confidence among employers and staff are needed to meet increased demand.

“However, the severe drop in staff availability, both temporary and permanent, that we saw in June should be a cause of concern. More must be done to meet the shortage of skills we face in the north so we can fill vacancies.

“Reskilling and upskilling, including training on the job, must become more readily available and achievable to encourage those who are out of jobs to look in other sectors and diversify their skills.”

Neil Carberry, chief executive of the REC, added: “Recruiters are working flat out to fill roles across our economy. The jobs market is improving at the fastest pace we have ever seen, but it is still an unpredictable time.

“We can’t yet tell how much the ending of furlough and greater candidate confidence will help to meet this rising demand for staff. In some key shortage sectors like hospitality, food, driving and IT, more support is likely to be needed to avoid slowing the recovery.

“That means supporting transitions into growing sectors through unemployment support and new skills programmes, as well as making sure the new immigration system reacts to demand, as promised.

“But it also means that hiring companies need to re-assess their workforce plans. In a tight jobs market, working with professional recruiters to position your firm as an employer of choice is a must.”