UK companies appointed more staff and starting salaries continued to rise during December but at a slower pace, with some firms still struggling to find skilled workers, a new survey suggests.
The slowdown in hiring affected both permanent and temporary staff, although some fields actually saw a big surge, like in the case of IT firms, which have been on the look-out for specialists in the wake of rising cyber attacks.
The data, compiled by Markit for the Recruitment and Employment Confederation and KMPG, showed that pay for people starting a new job continued to rise last month, but the pace of growth eased to a 26-month low.
This echoes the official data, which recently showed that average weekly earnings excluding bonuses rose just 2 per cent on a year ago in the three months to October – the slowest rate since February and down from 2.4 per cent in September.
And it comes despite falling unemployment and rising job security. The report suggests this might be due to annual pay reviews linked to inflation.
It reads: 'With inflation around zero, and even negative in some recent months, it’s not surprising that pay reviews are having a dampening effect on wage growth.
'However, in some sectors, notably construction where there tends to be a high turnover of staff and where skill shortages are acute, the effect of the tightening labour market is more than offsetting the weakness of annual pay reviews, and average pay growth has accelerated in recent months.'
Slowdown: December saw slower rises in both permanent and temporary staff appointments
Bernard Brown, partner at KPMG, said that companies were on the look for more permanent staff as compared to temps in December in a sign that they were becoming more resilient.
‘We are beginning to see a shift away from short term, low risk hiring, with demand for permanent staff outpacing that for temporary workers,’ Brown said.
‘This indicates businesses’ confidence is steadily solidifying, leading to an increased willingness to make long term investments in their workforce.’
The strongest demand for permanent staff was for computing workers in IT companies.
Brown added: ‘In the wake of several high profile breaches, companies are investing heavily in their cyber security teams and demand for IT specialists surged in December. This hiring boom has caused a skills shortage in the sector, with recruiters struggling to find enough candidates qualified in IT security to satisfy demand.’
Accountancy workers and blue collar workers such as cleaners and HGV drivers were also in short supply, according to the report.
Read original source and full article here via Daily Mail
Imperative People, leading UK experts in Cyber Security & InfoSec / Information Security IT Recruitment. We can help with your new role or recruitment strategy. Contact a consultant today.
Imperative People are based Nr Milton Keynes, in Bedfordshire and cover the whole of the UK.