Study notes further fall in permanent placements by UK consultants

There were reports of a heightened caution amongst clients, with firms reportedly holding back on recruitment. However, the overall fall in placements was noticeably slower, easing to the weakest for ten months.

Meanwhile, there was also a weaker fall in demand for staff during April, both for permanent and temporary workers. Pay growth rates nonetheless strengthened. Permanent salaries rose to the fastest degree so far this year, while temporary wage inflation was the strongest for nearly a year.

The report was compiled by S&P Global from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.

There was a further fall in the number of permanent staff appointments made by UK recruitment consultants during April, S&P Global said in a release.

Placements have now fallen in each month since October 2022, although the rate of decline in April was noticeably slower, easing to its weakest since June 2023.

Pay rates picked up during April as firms remained willing to raise wages to attract suitable candidates. Latest data signalled that pay has now increased for both permanent and temporary staff for 38 months in a row.

For permanent workers, the rate of growth accelerated to its highest in the year-to-date, though remained below its historical survey trend.

April’s survey data showed that overall demand for staff continued to fall, extending the current downturn to six months. That said, the rate of contraction was modest and the slowest since January.

Temporary staff demand was down only marginally and to a slower degree than for permanent workers.

Candidate availability continued to rise during April, with the rate of growth for all staff hitting its best for five months. Panellists noted a higher number of redundancies, whilst also signalling a general increase in the number of people looking for work. Rates of growth in candidate availability were similarly strong for both permanent and temporary staff.

Led by the retail category, April saw seven out of ten broad sectors covered by the survey register a drop in demand for permanent staff. For temporary vacancies, half of the sectors covered recorded a fall in demand during April, with retail registering by far the steepest contraction.

Fibre2Fashion News Desk (DS)