The latest KPPG/REC report on jobs has highlighted a number of very interesting changes in the labour market. We are continuing to see very strong growth in the number of permanent vacancies within the scientific and engineering sector with the demand for engineers increasing dramatically and these two areas growing at a faster rate than most other industrial sectors. The growth in these is the second strongest since the information was first collated in 1997, and interestingly most growth has been in the North of the UK with London and the South East being weakest.
There has also been increased demand for temporary staff in the scientific and engineering fields but at much lower levels than the permanent side. This reflects the increased confidence within the science and manufacturing sectors as a whole with companies now preferring to invest on staff, rather that taking them on a short term basis.
The knock on effect of this growth in demand is starting to have an effect both in terms of candidate availability, which is diminishing, and salary inflation, as we are starting to see some pressure on salaries and hourly rates, and we expect this to continue over the next few months. However it is worth noting that the level of salary/rate increase is still below the national inflation rate.
Overall this is very positive news for our sectors and we are starting to see a broader range of roles, with much of the growth in the permanent sector.