The jobs market in the South West is showing signs of bouncing back with firms beginning to search for new staff as they emerge from lockdown, a report shows.
The region saw a surge in hiring activity during the closing month of the first quarter, according to the latestsurvey.
Permanent staff appointments rose for the first time in three months, and at the strongest rate since February 2015 amid reports of a greater degree of confidence in the market due to the planned loosening of lockdown measures and higher demand for staff.
READ MORE: {}
Meanwhile the upturn in temp billings was the most marked since August 2020. Anecdotal evidence attributed the latest rise to a surge in demand for staff and a partial recovery in the labour market amid the .
Amid reports that firms were stepping up hiring, demand for staff in the South West surged during March. The rise in permanent vacancies was the strongest since August 2018, while demand for temp staff increased at the sharpest pace for over two-and-a-half years.
Data also highlighted a renewed fall in staff supply across the region. Adjusted for seasonal variation, the South of England Permanent Staff Availability Index dipped below the 50.0 mark in March and signalled the first fall in permanent staff supply for a year.
Panellists attributed the decline, which was sharp, to an increase in staff appointments and ongoing uncertainty due to Covid-19 making candidates wary of switching roles.
A similar trend was recorded for temporary staff during March, with the availability of short-term candidates in the South of England declining for the first time since February 2020.
Most Read
Covid-19, IR35 tax-avoidance regulations, Brexit, and the return of employees from furlough were all cited as reasons for the fall. The rate of reduction was marginal overall.
As a result, starting salaries rose for the first time since December 2020 and the rate of temp wage inflation quickened. Recruiters across the South of England recorded a renewed upturn in permanent starting salaries during March, amid reports that a drop in the supply of candidates drove up pay rates.
The increase was the fastest since last February and moderate overall, but nonetheless slower than that seen across the 海角视频 as a whole.
Average hourly pay rates for short-term staff across the region rose further during March. Panellists attributed the latest increase to high demand for candidates. Moreover, the rate of wage inflation was the fastest since January 2020 and solid overall.
Ian Brokenshire, senior partner for KPMG in Plymouth, said: “The vaccine rollout and extension of Covid-support schemes in March’s Budget has given a renewed sense of optimism among the region’s businesses.
“This is reflected in the rise in permanent placements for the first time in three months, with the rate of increase at its strongest pace since February 2015. Things are certainly looking up.”
The number of permanent placements across the South of England, including the South West, rose
Don’t miss
The KPMG and REC, 海角视频 Report on Jobs: South of England is compiled by IHS Markit from responses to questionnaires sent to around 150 recruitment and employment consultancies in the South of England.
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: - LinkedIn: - Facebook:
Stay in touch: BusinessLive newsletters have been re-designed to make them even better. We send morning bulletins straight to your inbox on the latest news, views and opinion in the South West. Get our breaking news alerts and weekly sector reviews too. Sign up now - it's free and it only takes a minute. To sign up for Business Live's daily newsletters click .
And visit the Business Live South West LinkedIn page
Neil Carberry, chief executive of the REC (Recruitment and Employment Confederation), said: “For months, we have been talking about the potential recruiters saw for a recovery in hiring as we got on with vaccinations and the lockdown did its work.
“Today’s data shows that even during lockdown, our labour market was bouncing back. The strong temporary recruitment trend of the past few months has been maintained, but with a new addition – the fastest increase in permanent job placements since 2015.
“Taken together with a long-awaited recovery in hiring in London, this is a sign that business confidence is starting to flow back, even at this early stage of unlocking.
“As companies start to recruit, they will need to appreciate that the labour market is still suffering from all sorts of shortages. So reviewing their hiring practices and doing things in the best way possible will matter more than ever.
“Inclusive hiring is not a tick-box exercise – it’s about finding the best candidate for the job no matter who they are, to help your business succeed. By working with professional recruiters, business leaders can help create fairer, more inclusive and more productive workplaces.”