Permanent appointments in the UK rose for a fourth consecutive month in January, according to findings in the Report on Jobs produced by Markit on behalf of KPMG and the Recruitment and Employment Confederation.

The survey of 400 UK recruitment and employment consultancies indicated a rise in permanent staff placements for the fourth month running during January, while growth held steady from December's solid rate.

The rate of growth in permanent vacancies quickened, with a 21-month high, but temp vacancies rose at a slightly slower pace than in December.

Answers from respondents further showed that the average starting salaries for people placed in permanent jobs continued to increase in January. The report indicated that inflation and a deterioration in the availability of permanent staff had contributed to the rise in salaries.

Meanwhile, hourly rates of pay for staff in temporary or contract employment decreased for the first time in five months during January.

Regional variation

The North of the UK saw the fastest growth of permanent placements in January, followed by the Midlands, London and the South, which posted modest increases.

All four of the English regions posted growth of temp billings during January, albeit at varying rates.

Sector demand

Private sector demand for permanent employees rose at a strong rate in January, with growth picking up a ten-month high.

However, private sector demand for temporary staff slipped slightly for the first time in a year.

Meanwhile, in the public sector, demand fell for both permanent and temporary staff in January, with the former recording sharper decline.

Tom Hadley, Recruitment and Employment Confederation director of policy and professional services, said: "The war for talent has begun. January saw the sharpest rise in starting salaries in well over a year after a nine-month trend of increases.

"The rise is caused by continued growth in permanent vacancies paired with a reduction in candidate availability. This is good news for workers but also highlights the need to address the current skills disconnect which presents a major barrier to growth in key sectors of our economy.

Markit's report is produced monthly and provides one of the most up-to-date and comprehensive monthly pictures of recruitment, employment and employee earnings trends available.

MF

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