Busy times for all! According to the REC/KPMG job report in June, there was a considerable reduction in the availability of staff for both permanent and temporary/contract roles. In fact it was the sharpest decline on the permanent side in the survey history, which began in October 1997 and the greatest on the temporary/contract side since March 1998. Inevitably this is beginning to push salaries and rates, and will continue to do so until labour demand and supply begin to balance out again.
The Gross Domestic Product (GDP) in the United Kingdom expanded 0.80 percent in the first quarter of 2014 over the previous quarter. GDP Growth Rate in the UK averaged 0.62 percent from 1955 until 2014, so we are clearly in a period of relatively strong growth.
With net migration to Britain at 212,000 at the end of 2013, which is a rise of 35,000 from the previous year but down on previous quarters. The main source of increased supply is from the reduction in the number of unemployed which fell by 121,000 to 2.12 million in the three months to May, per the Office for National Statistics (ONS). Clearly training and up-skilling become the key determinants here.
In such a growth market, with pressure on salaries and rates, competition for people of course increases as well and differentiating our businesses to attract and retain candidates becomes critical.
After several years of supply of labour outstripping demand, these are nice problems to have!