Conditions in the UK labour market are gradually improving, with signs of optimism among both employers and candidates.
The latest UK Report on Jobs from the Recruitment and Employment Confederation (REC) and KPMG shows a much slower decrease in permanent placements in March while billings for temporary workers increased at the fastest pace in six months.
Meanwhile, candidate availability rose for the first time in more than two years amid greater confidence among job seekers.
“This suggests that, while the market is still tight, it should be getting gradually easier for firms to hire over the next few months,” explained REC chief executive Neil Carberry.
Last month saw further increases in starting pay for both permanent and temporary workers due to the ongoing rise in living costs and employers’ efforts to attract and secure suitable staff.
“The continuing fast rate of pay growth is likely reflective of the impact of inflation on wage offers, as well as low labour supply,” Carberry said. “That means increasing pay is likely to persist, despite more people beginning to look for work.”
Carberry added that it was “a good time to be looking for work”, particularly in hospitality, healthcare, accountancy and financial roles.
The Report on Jobs is based on a survey of around 400 recruitment and employment consultancies across the UK.
