Good news and bad news on the employment front
Posted on 8th November 2018
This month’s Markit report on recruitment/employment contains both good and less good (OK, bad) news.
The good news is, broadly speaking, as follows:
- Perm employees starting salaries continue their sharp, upward trend
- Wage inflation for new employees is close to a three and a half year peak
- In Scotland specifically, starting salary inflation has reached a 46-month high
- The Office for National Statistics (ONS) reports that employee earnings rose by 3.1pc in the 12 months to August, the strongest growth seen since 2009
- Unemployment reached its lowest level in the last 40 years.
- Unemployment is expected to fall below 4pc by the end of 2018
- The REC’s index of job vacancies was at 57.4 in October (any score over 50 indicates growth). This was a rise from 56 in September.
The less good news, from the perspective of recruiters and employers at least, is that:
- The REC survey highlighted that staff shortages remain particularly severe in technology
- Skills shortages mean that some employees are “job-hopping” to drive up their earnings
- Overall, recruiters are “facing their toughest recruitment market for 20 years" as people shop around for new roles on higher salaries
- Depending on the government’s post-Brexit immigration policy, there may be problems with access to migrant workers. This is particularly important for tech.
As regards IT and computing specifically, once again our sector heads the perm chart and is second in temp vacancies (behind healthcare). With a figure of 77.7 for permanent vacancies and 72.2 for contractors/temps, growth in the IT industries continues to forge ahead. It's also worth noting that the Markit "industry-level data indicated that IT and Computing registered the steepest increase in permanent staff demand of all eight monitored job categories."
That’s your challenge – and ours too. However, the good news is that Be-IT continues to be able to winkle out those hen's teeth techies that others covet but can't find. If you're struggling to fill a vacancy (or a key employee has "job-hopped" for a bigger salary, leaving you in the lurch) then we can help.
Nikola Kelly, MD, Be-IT
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