April sees staff rates falling but pay growth on the up

  • Pay & Benefits
staff rates falling
Peninsula Logo

Peninsula Team, Peninsula Team

(Last updated )

The latest KPMG and Recruitment and Employment Confederation (REC) report on UK jobs has found the number of workplaces is still slowly dropping while salaries are increasing

Permanent and temporary position appointments are still seeing drops, but only slightly over all sectors, the 19th month in a row this has been the case.

Additionally, the number of permanent and temporary positions in the accounting sector was significantly lower than in April 2023.

Wage growth is still on the up to attract talent into positions, with pay has been increasing for temporary and permanent positions for the last 38 consecutive months. Temporary positions experienced the sharpest wage increase since June 2023.

Availability of candidates is in fact at a five-month high, with the fastest increase since November 2023.

Neil Carberry, REC chief executive, said: ‘The critical moment in any labour market slowdown is the point at which demand starts to turn around.

‘Today’s hiring data suggests that point is close, with fewer recruitment firms reporting a drop in demand. While the trend is still gently down, the pace of decline in permanent hiring is the slowest in ten months.’

The number of positions available still remains high, but 13,000 lower than December 2023. There are still significantly higher vacancies than before the pandemic when there were 796,000 jobs posted in from January-March 2020. The total number in April 2024 was 916,000.

The accountancy and financial sector has many skills in short supply for permanent positions, such as auditors, book keepers, credit controllers, entry-level accountants, financial analysts and more.

Similarly, with temporary positions, there are multiple skills in short supply here, with accountants, auditors, bookkeepers, credit controllers, entry level finance positions and payroll staff being the most sought-after.

Jon Holt, chief executive, and senior partner of KPMG said: ‘While there are still complexities, like pay rates improving due in part to last month’s 9.8% rise in the National Living Wage, overall pressure is easing on the labour market.

‘Ongoing weak demand is driving the steady decline in permanent staff appointments month on month, and we’ve seen a sharp uptick in candidate availability.’

Visit BrAInbox today where you can find answers to questions like Do I have to give employees a pay rise to help out with the cost of living crisis?

Related articles

  • paternity leave act passed

    Blog

    Paternity Leave (Bereavement) Act 2024 passed before Parliament went into recess

    The sudden announcement of a general election to be held on 4 July left only a few days before Parliament closed down and gave the Government the problem of which items of legislation to quickly push through the adoption process.

    Peninsula TeamPeninsula Team
    • Employment Contract
  • potential tax rise

    Blog

    Sunak's £2k tax rise jibe 'absolute garbage' says Starmer

    Taxes were on the agenda for the Prime Minister as he repeated ‘I don’t want to raise your taxes to pay for that’ at the first TV debate as he accused Starmer of targeting wealthy to fund Labour policies

    Peninsula TeamPeninsula Team
    • Pay & Benefits
  • labour updated manifesto

    Blog

    Labour releases updated manifesto

    Ahead of the General Election on Thursday 4 July 2024, the Labour Party has released an updated manifesto, ‘Labour’s plan to make work pay – delivering a new deal for working people’.

    Peninsula TeamPeninsula Team
    • HR Policies Documentation
Back to resource hub

Try Brainbox for free today

When AI meets 40 years of Peninsula expertise... you get instant, expert answers to your HR and health & safety questions

Sign up to our newsletter

Get the latest news & tips that matter most to your business in our monthly newsletter.