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Fewer jobs but higher pay in the South West

  • by JW

“Some reasons to be positive.” [ONS’ director of economic statistics]


According to a report by KPMG and recruitment industry body REC just out, the jobs market reflects the “challenging trading conditions”, as reported on Business Live today:

Economic uncertainty has driven a deeper downturn in permanent staff appointments in the South of England, new research has revealed. Permanent staff appoints fell at the sharpest pace in just over three years, during July, while there was a fresh contraction in temp billings according to the latest KPMG and REC UK Report on jobs survey, compiled by S&P Global.

Reports of redundancies combined with a general slowdown in hiring activity drove further steep increases in the supply of both permanent and temporary staff. However, the report found, pay pressures picked up slightly, as the rising cost of living and competition for specific skills pushed up starting salaries and temp wages. Meanwhile, both permanent and temporary vacancies expanded at slower rates.

The Recruitment and Employment Confederation (REC) gives its take on the analysis of permanent and temporary recruitment, vacancies and earnings; KMPG does likewise, summarising the job market thus: “muted confidence around the economic outlook drives a steeper drop in permanent placements”.

The analysis from Larry Elliot of the Guardian notes that the UK jobs market is cooling despite record pay growth.

And today’s Mail worries that “wage rises have hit a new record, raising fresh concerns about inflation – despite signs the jobs market is weakening” – whilst long-term sickness has risen again to a new record.

Meanwhile in Devon, “almost 100,000 people were classed as economically inactive as of March”, according to figures just released:

The ONS’ director of economic statistics, Darren Morgan, said there were some reasons to be positive. “Earnings continue to grow in cash terms, with basic pay growing at its fastest since current records began. Coupled with lower inflation, this means the position on people’s real pay is recovering and now looks a bit better than a few months back.”

And how’s the job market doing in Sidmouth and East Devon?