Hiring conditions improved following the Conservative election victory
Hiring conditions in the UK job market improved following the Conservative victory in the General Election, a report published today showed.
Permanent staff appointments rose for the first time in a year, while temp billings growth picked up from November, the survey from KPMG and the Recruitment & Employment Confederation (REC) found.
According to some respondents, some firms approved new hires in December following a long period of delayed decision-making.
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The December data showed the first rise in permanent staff appointments for a year, though growth was only modest.
The report linked the upturn to higher business activity, the commencement of previously delayed hiring plans and the upcoming IR35 legislation changes.
However, despite the positive news, rates of expansion were notably weaker than seen on average over the survey history.
Demand for staff continued to increase at a relatively sluggish pace, with vacancy growth languishing near a decade low.
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There was a further fall in candidate numbers and as a result, starting pay for both permanent and temporary staff rose, and at slightly quicker rates than in November.
James Stewart, vice chair at KPMG, said: “It would appear that following the clarity of the election outcome, the jobs market finally began to show signs of life with permanent placements rising for the first time in a year.”
Neil Carberry, REC chief executive, said: “After the uncertainty of 2019, there are some signs of a clearer outlook for hiring in today’s survey. With a new government in place and the path ahead looking more predictable, some businesses have decided that they have waited long enough.
“The first increase in permanent placements for a year should give encouragement to both recruiters and employers – let’s hope this is a sign of positive things to come.”