Report on Jobs – December 2024
The Report on Jobs is unique in providingthe most comprehensive guide tothe UK labour market, drawing on original survey data provided by recruitment consultancies (including Glencourt Associates) and employers to provide the first indication each month of labour market trends.
A summary of the findings is provided below and contact Glencourt Associates at post@glencourtassociates.com or 01342 712253 for additional data behind this headline information.
Accelerated fall in permanent placements signalled in December
Permanent staff placements declined in December, extending the current period of contraction to well over two years. Moreover, the degree to which placements fell was again steep, accelerating for a third month
running to the sharpest since August 2023. Recruitment activity at firms was reportedly on hold amid concerns over the cost of hiring, in turn linked to the government’s proposed changes to national insurance contributions and employment rights. Permanent placements were down across England. Especially acute declines were seen in the North and South of England. A noticeably slower fall in placements was
registered in London
Temp billings down for sixth month in a row in December
Temp billings continued to fall in December. It was the sixth successive monthly contraction recorded by the survey, with the latest decline steeper than the average for 2024. Recruitment market activity was reported
to be slower, with firms reluctant to take on or replace staff given some economic uncertainty and the recent government Budget. The Midlands bucked the wider market trend, registering some modest growth in
temp billings. All other English regions saw a contraction, led by the South of England.
Upturn in permanent salary pay recorded in December
Despite a drop in permanent placements, there was an acceleration in the rate of starting salary inflation during December as firms remained willing to raise pay for high quality staff (and in some instances as part of talent retention programmes). Overall, the increase in perm salaries was the best in four months, although inflation remained well below trend. Similarly, temp pay rates rose modestly in December amid reports that a high supply of candidates was limiting pay inflation.
Vacancies continue to contract sharply
In December, vacancy numbers declined again, with the rate of contraction picking up since November to the steepest recorded in well over four years. Permanent staff saw the biggest drop in demand since August 2020. Although not as severe as perm workers, the decline for temp staff was the greatest in four-and-a-half years.
Staff availability rises at an accelerated pace
Recruitment consultants reported another steep increase in staff availability during December. Overall, the expansion in availability was the sharpest since June. The upturn in growth was primarily driven by the permanent staff category, although temp worker availability also rose sharply at the end of 2024.
Source: KPMG & REC Report on Jobs
