By Jonathan London on 10th September 2015

UK jobs market growth slows during August 2015

IT contracting jobs

Staff appointments in the UK continued to rise in August, but at the slowest rate for over two years, according to a new industry report.

The latest Recruitment and Employment Confederation (REC) and KPMG Report on Jobs showed that temporary and contract staff billings increased at the slowest pace since May 2013 last month, with the rise in permanent placements also decelerating to levels not seen in 27 months.

Similarly, demand for temps also fell to the lowest rate of growth seen in 26 months, with the ongoing skills shortage that has been affecting the UK for some time continuing to dampen hiring intentions among British businesses.

However, for those with the right skills, the rewards are potentially significant, with salary growth remaining strong during August.

The Midlands saw the fastest growth in terms of short-term appointments, while the slowest expansion was seen in the north. Temp workers are in greatest demand in the nursing, medical and care sector, while the executive/professional category was the slowest-growing of those assessed.

Kevin Green, chief executive of the REC, said: “The UK jobs market is entering a new phase. Because of the scarcity of talent available, we expect that employment will continue to grow but at a slower speed than we have seen over the past two years. Likewise, unemployment is likely to slow its rate of descent as we move closer to full employment.”

Bernard Brown, partner at KPMG, also observed that the number of people looking for a job fell at the sharpest rate seen for a year during August, leaving unfilled posts across the economy.

However, candidates are expected to resume their applications in September when their prospects are stronger, meaning competition could be set to heat up again soon.

Jonathan London Written by Jonathan London

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