Every month, it’s the same old good news on employment…
Posted on 17th October 2017
The publication of the most recent Markit reports on recruitment in Scotland and the UK continues to demonstrate something that we at be.it are only too well aware of, namely that demand from clients seems ever-growing, while supply of great candidates seems constantly diminishing.
The truth, as always, is more nuanced, however, there is no arguing with the overall tenor of the Markit figures. In particular, their statement that, “the rate of deterioration (of availability of perm staff) was in line with August, with approximately 43% of panellists (i.e, the recruitment consultancies like be.it) who fill in the Markit survey) reporting lower availability. The latest fall extended the current sequence of decline to 67 months (my emphasis).”
Now while this quotation is for the economy as a whole, the Markit survey also notes that, for perm roles, “By job type, IT & Computing registered the sharpest growth.” In the temp/contractor market, IT & Computing was second behind “Blue Collar” vacancies, but the rate of growth was still very substantial.
Clearly, supply and demand interact to affect prices, or here wages. Although we need to temper our enthusiasm by noting that inflation is still, by recent standards, quite high (and today is reported to be up to 3%), wages are rising faster than for many years. The September Markit report makes this clear, saying, “Permanent starting salaries increased at the fastest rate in 33 months in September. This contrasted with the aggregate UK data, which signalled a marginally slower rate of starting salary inflation than in August. Meanwhile, average hourly pay rates for contract staff in Scotland rose sharply again.”
Once more, I need to add the caveat that this quote is for every area of the economy. However, given that IT & Computing ranked first and second in the perm and contractor rankings for employer demand, you don’t have to be a genius to work out that this means there are some very good salaries on offer for those with the necessary skills and experience. And if that’s you, then take it as a hint...
Gareth Biggerstaff, CEO, Be-IT
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