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The survey based on original survey data provided by recruitment consultancies revealed that temporary/contract staff billings rose at a much sharper pace in June, with the latest increase the strongest in seven months. It also showed that pay growth for temporary/contract staff quickened last month, reaching the sharpest since March 2008.

 

 

Billings for temporary/contract staff rose in each of the four monitored English regions, with the strongest increase in the North. The increase in the Midlands, however, was marginal.

 

 

 

Temporary/contract vacancies in the private sector increased at the quickest pace since information was first available in December 2011, a trend mirrored by permanent vacancies.

 

 

Unlike public sector permanent vacancies which rose for the first time in six months during June, the number of public sector temporary/contract vacancies remained unchanged from May.

 

 

Engineering was the industry sector that experienced the highest demand for temporary/contract staff during June, closely followed by Nursing/Medical/Care. The weakest growth was found in the Accounting/Financial sector.

 

‘Demand for staff at a three year high’


REC chief executive Kevin Green commented: ‘We are now seeing the UK jobs market blast off with the highest number of people being placed in permanent jobs for two years and demand for staff at a three year high.

 

 

‘The UK jobs market has been agile enough to weather the recession and emerge with more people in work than ever before and has performed considerably better than our European counterparts.

‘Our main concern is that the soaring success of the jobs market and signs of economic recovery could be undermined if the government does not do more to address the growing skills gap. Roles in engineering and IT are in ever increasing demand as recruiters struggle to source the talent that businesses need to succeed. However more roles, such as sales and digital marketing, have been added to this growing list in the last couple of months and show no signs of disappearing.

 

‘The war for talent in growth sectors is driving starting salaries to increase at the fastest pace in two years.’

 

Bernard Brown, Partner and Head of Business Services at KPMG said: ‘The latest figures reveal permanent placements enjoying their highest growth rates for over two years and temporary roles being filled at the quickest pace since Christmas.  Perhaps the sun has finally come out to shine on the jobs market and economy at large?

‘Employers seem to think so.  Many have stepped up their search for staff with demand for staff accelerating to a three year high.  Confidence is even beginning to show itself with employers prepared to increase the salaries they offer to new employees.’

 

‘At the same time, candidates are still hedging their bets.  We are still witnessing a cautious approach with many hanging on to the jobs they know, fearing the insecurity that comes with starting somewhere new.  Yet, if the economy continues along its current path, it is likely that candidates will also step out in increasing numbers as the year goes on.’