both permanent and contract hiring in the City remain stubbornly strong
- Contract vacancies slip 10%
- Permanent placements up 5%
- Contractors out on assignment down 8%
- Permanent vacancies increase by 0.2%
- Average salaries up 0.4% year-on-year
Demand for contractors dips
Professional recruitment firms reported that overall vacancy numbers for contract roles dipped by 10% in October 2017, while demand for permanent professionals remained largely stable, increasing by 0.2% year-on-year, according to new survey data from the Association of Professional Staffing Companies (APSCo).
APSCo’s data, which focuses on professional recruitment, reveals that demand for contractors decreased across every one of the trade association’s core sector groups. Vacancies within engineering, for example, slipped by just 2%, while demand within IT, finance and marketing fell more significantly (by 10%, 15% and 25% respectively).
Permanent placements up
While new openings for permanent roles increased by just 0.2% in October 2017, the number of professionals placed that month increased by 5% year-on-year. Much of this strength can be attributed to the finance and engineering sectors (where placements increased by 17% and 7% respectively).
Fewer contractors out
The overall number of contractors out on assignment, meanwhile, dipped by 8% during the same period. This can largely be attributed to a 30% year-on-year fall in IT professionals working on a contract basis during this time.
Despite this overall dip, the number of contractors out on assignment within engineering and finance increased year-on-year in October 2017 (by 14% and 6% respectively).
Average salaries stable
APSCo’s figures also reveal that median salaries across all professional sectors remain largely stable, decreasing by 0.2% year-on-year. This figure is characterised by notable fluctuations in terms of sector, with financial services and engineering, for example, recording uplifts of 3.8% and 2.9% respectively.
Ann Swain, Chief Executive of APSCo comments:
“While it’s encouraging that permanent placements remained stable in October, hiring activity in certain sectors is booming. Despite the Bank of England’s prediction that Brexit could cost London 75,000 finance jobs, for example, both permanent and contract hiring in the City remain stubbornly strong. And at time when UK manufacturing order books are at their strongest level since 1988, engineering is also performing particularly well, with the number of contractors out on assignment up 14% year-on-year.”
“The overall fall in contract placements can largely be attributed to a 30% drop in IT assignments. This may, in part, be in response to changes to rules around off payroll working in the public sector which were introduced in April. However, news that the government will not automatically extend these reforms to the private sector without careful consideration should ensure the wider contract market remains strong in the near future.”
Adam Pode for Staffing Industry Analysts says:
“We are currently seeing a mixed picture in the market. If you have the skills they need, then companies want you on a permanent basis”.
T: +44 (0)1582 790 708
Notes to editors:
Professional Recruitment Trends is the only monthly publication providing original data and analysis on the professional staffing market. It is produced jointly by APSCo and Staffing Industry Analysts.
APSCo is the membership body that is dedicated to representing professional recruitment in the UK. It was formed to give all firms involved in the recruitment of professional talent who have a commitment to excellence, the specialist support and distinctive voice they need to be successful. It gives candidates and employers a trusted badge of quality whilst providing member firms with an innovative range of services designed for them by recruitment experts. These services, combined with its growing international profile, commitment to Corporate Social Responsibility and opportunities for professional networking give APSCo members a unique opportunity to develop their businesses and gain competitive advantage (http://www.apsco.org).
This press release was distributed by ResponseSource Press Release Wire on behalf of BlueSky Public Relations Ltd in the following categories: Business & Finance, Education & Human Resources, Manufacturing, Engineering & Energy, for more information visit https://pressreleasewire.responsesource.com/about.