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Report Shows Hiring Growth Accelerates in August

13/09/21 Daniel Saddi Associate Director

The latest KPMG and REC ‘Report on Jobs’ clearly demonstrates business confidence is high. Increasing vacancy numbers and new employees joining businesses are at record levels with the main challenges being cantered on declining candidate availability, particularly in the scarce-skill engineering & technology sector.

In the latest ONS release covering the three months to August 2021, the number of job vacancies was 1,034,000, the first time vacancies has risen over the 1 million since records began, and is now 249,000 above its pre-coronavirus (COVID-19) pandemic January to March 2020 level. The number of vacancies reached record levels across all size bands in June to August 2021.

The key findings from August's KPMG & REC Report indicate:

             Permanent placement growth hits a new record high

             Unprecedented drop in candidate supply drives sharper increases in pay

             Vacancy growth close to all-time high

             Engineering & Technology Sector still showing strong resilience with consecutive monthly growth

Neil Carberry, Chief Executive of the REC said,

“In August, the number of staff available to start jobs fell at another new record rate, deepening the current labour shortage. Recruiters are working around the clock, placing more people into work than ever as these figures show. Switching the entire economy on over the summer has created a unique demand spike, and a short-term crisis. “But it would be a mistake for businesses to think of this as only a short-term issue. A number of factors mean that the UK labour market will remain tight for several years to come.

Business leaders should looking now at how they will build their future workforces, in partnership with recruiters, including the skills and career path development. But attracting and retaining staff also requires a serious assessment of why workers want to work with the firm – from management approaches to facilities, as well as pay.”

Commenting on the latest survey results, Claire Warnes, Head of Education, Skills and Productivity at KPMG UK, said

“Candidate shortages continue to plague businesses, who are all recruiting from the same pool of talent and struggling to fill gaps. While record high permanent placements and higher starting salaries mean it remains a job seekers market, recruiters and employers have seen the most severe decline of candidate availability in the survey’s history and will be thinking about how to attract and retain new staff.

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