Tag: salaries

Downturn in permanent hiring activity eases during December

Royal Bank of Scotland report on jobs 

  • Recruitment activity falls for the third month running
  • Growth of demand for labour softens during December
  • Starting salaries rise at quickest pace since June

According to the latest Royal Bank of Scotland Report on Jobs survey, Scottish recruiters reported a decline in permanent placements during December. The rate of contraction eased considerably over the month, however, with the respective index climbing from 40.6 in November to 46.8 in December.

Nevertheless, placements fell for the third month running overall, as recession fears and market uncertainty dampened recruitment activity. Temp billings likewise fell for the third successive month. Growth of demand for labour continued to soften during the final month of the year.

Permanent and temp vacancies expanded at the weakest rates in 22 and 27 months, respectively. Nonetheless, in efforts to attract and secure candidates amid ongoing reports of labour shortages, firms across Scotland continued to raise starting salaries and temp wages sharply.

Softer reduction in permanent placements

The number of permanent staff appointments across Scotland fell in December, thereby extending the current run of contraction to three months. The downturn eased from November’s 29-month record, but was nonetheless solid overall. According to panellists, reduced market confidence and the cost of living crisis weighed on recruitment.

Though strong, the reduction in permanent placements across Scotland was softer than the UK-wide average.

For the third month running, recruitment consultancies across Scotland reported a decrease in billings received from the employment of short-term staff during December. Adjusted for seasonality, the Temporary Billings Index ticked down from November, to signal a quicker rate of contraction, albeit one that remained mild overall. Skill shortages and difficulties sourcing candidates were in part blamed for the latest decrease.

While a further reduction in temp billings was recorded across Scotland at the end of 2022, the UK as a whole registered a modest expansion.

Marked fall in permanent labour supply in December

The availability of candidates to fill permanent positions across Scotland worsened for the twenty-third consecutive month during December. Although easing from November, the rate of decline remained marked overall and among the fastest on record. Acute skill and candidate shortages limited the supply of workers, according to recruiters. Furthermore, the cost of living crisis, recession fears and greater market uncertainty also restrained labour movement.

The pace of reduction in permanent candidate availability across Scotland outstripped the UK-wide average.

As has been the case in each of the last 22 months, Scottish recruiters reported a fall in temp candidate numbers during December. The rate of reduction gathered pace for the third month running and was the sharpest since June. The latest reduction in temp staff availability was attributed to a slowdown in market conditions, Brexit and a general scarcity of labour.

Starting salaries rise rapidly in December

December data revealed another sharp rise in starting salaries awarded to permanent joiners during December. Notably, the pace of growth continued to quicken from October’s 16-month low, with the latest upturn the steepest since June and above the historical average. According to anecdotal evidence, labour and skill scarcity continued drive up salaries.

Starting salaries across Scotland rose at a much faster pace than that recorded at the UK level.

Pay rates for temp staff across Scotland rose during December, thereby stretching the current run of wage inflation to 25 months. While the rate of growth eased slightly from November, it remained stronger than the survey average and signalled a sharp rise in hourly wages overall. Recruiters indicated that companies raised their pay rates as part of efforts to attract staff amid ongoing labour shortages.

As was the case with permanent starting salaries, temp wages across Scotland grew at a much stronger rate than that seen across the UK as a whole.

Growth of demand for permanent staff eases in December

Growth of demand for permanent staff moderated for the eighth successive month during December. Though strong, the latest upturn was the softest seen since the current run of expansion began in February 2021. Moreover, the rate of increase was weaker than the survey average.

The strongest upturns in demand for permanent staff were seen across the Nursing/Medical/Care and IT & Computing sectors.

Scottish recruiters reported a marked slowdown in growth of demand for temp staff during December. Notably, the respective seasonally adjusted index fell to its lowest level in 27 months and pointed to only a marginal rate of growth.

Of the eight monitored sectors, IT & Computing reported the strongest increase in demand, with Nursing/Medical/Care ranking second.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “The final Report on Jobs survey of the year concluded with a further downturn in hiring activity across Scotland, with recruiters noting a third monthly contraction in both permanent placements and temp billings.

“According to panel members, greater market uncertainty and fears over a recession led clients to maintain a cautious approach to staff hiring at the end of 2022. Demand for labour also softened, adding to the likelihood that challenges across the labour market will persist as we enter the new year.

“Nonetheless, with difficulties sourcing suitable candidates, firms continued to raise rates of starting pay. Thus, the data overall suggest that firms are becoming more selective and guarded with their hiring decisions, but willing to offer competitive pay to candidates to secure them.” 

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Royal Bank of Scotland: October report on jobs

Renewed downturn in permanent placements during October

  • Permanent placements fall amid growing economic uncertainty
  • Temp billings decline for first time in 26 months
  • Pay pressures soften, but remain strong overall

Hiring activity across Scotland fell into decline during October, with both permanent staff appointments and temporary billings contracting, according to the latest Royal Bank of Scotland Report on Jobs survey.

Permanent placements have now fallen in two of the past three months, while the downturn in temp billings was the first seen since August 2020. Moreover, the rates of contraction were strong overall amid reports of growing economic uncertainty, softening demand conditions and the deepening cost of living crisis.

October data also revealed further increases in starting salaries and temp wages. However, rates of inflation continued to ease, signalling a mild waning of pressure on pay.

Permanent staff placements fall solidly

October data highlighted a fall in permanent staff placements across Scotland. After a month of growth in September, the respective seasonally adjusted index reverted below the neutral 50.0 threshold to signal the second reduction in three months.

The rate of contraction was the fastest seen in nearly two years and solid, with recruiters often linking the fall to growing economic uncertainty and the cost of living crisis.

At the UK level, a fall in permanent staff hires was also noted, with the rate of decline similar to that seen in Scotland.

Scottish recruitment consultancies signalled a reduction in temp billings during October, thereby ending a 25-month run of expansion. The rate of contraction was the quickest seen since July 2020 during the initial wave of the pandemic and strong overall. According to panellists, the latest fall was driven by reduced activity at clients. 

Across the UK as a whole, temp billings were broadly stagnant after rising in each of the prior 26 months.

Downturn in permanent staff supply fastest in three months

Recruiters across Scotland noted a twenty-first successive monthly fall in permanent candidate availability during October. The pace of decline quickened on the month and was marked overall. Panellists generally linked the latest downturn to skill shortages and increased hesitancy to seek out new roles due to rising economic uncertainty.

The pace of reduction across Scotland was more rapid than that recorded for the UK as a whole.

The supply of temp labour across Scotland fell again during October. Despite being severe overall, the rate of decline was the second-slowest in seven months (after September). Recruiters highlighted a lack of European workers and ongoing skill shortages as factors constraining supply.

As has been the case for the last seven months, the rate of contraction in temp staff availability in Scotland was sharper than that seen at the UK level.

Starting salary inflation softens further in October

Latest survey data indicated that average starting salaries for permanent staff in Scotland increased at the slowest pace since June 2021 during October. That said, the pace of wage inflation remained elevated in comparison to the historical average. According to anecdotal evidence, skill and candidate shortages continued to drive up rates of pay.

Data for the UK as a whole also signalled a softer rise in starting salaries during October. Moreover, the pace of inflation was softer than that seen for Scotland for the first time in four months.

As has been the case for the past 23 months, temp wages rose across Scotland during October. While the respective seasonally adjusted index hit an 18-month low, it signalled a sharp rise overall. Greater competition for scarce candidates was cited as a key driver of the latest increase in temp pay.

At the national level, wages also increased at a much slower rate during October. However, the rate of inflation was quicker than that registered in Scotland.

Demand for permanent staff expands at slowest pace in 20 months

Demand for permanent staff grew sharply during October, thereby extending the current period of expansion to 21 months. However, the respective seasonally adjusted index fell for the sixth month running, with the latest reading edging down to a 20-month low.

Across the monitored job categories, IT & Computing registered the steepest rate of expansion, followed by Nursing/Medical/Care.

Recruiters across Scotland noted a twenty-fifth successive monthly rise in temp staff demand during October. While the rate of growth was the weakest since February 2021, it was quicker than that seen across the UK as a whole.

At the sector level, IT & Computing saw the quickest growth in short-term vacancies, followed by Accounts & Financial.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Labour market conditions across Scotland deteriorated in October, as for the first time since August 2020, both permanent placements and temporary billings contracted.

“At the same time, rates of vacancy growth for both permanent and short-term staff continued to ease. Candidate and skill shortages meanwhile stretched the supply of labour thin, with recruiters also noting that increased economic uncertainty had impacted candidate numbers. Though it does seem that market imbalances are becoming less pronounced, the effect on pay remains strong.

“The data therefore suggest that growing uncertainty about the economy and the cost of living crisis are already affecting the labour market, and could weigh further on hiring decisions for the remainder of the final quarter of 2022.”

Royal Bank of Scotland Jobs report shows permanent placements increase in September, but growth “mild”

  • Fresh uplift in permanent staff appointments, but growth only mild
  • Temp billings rise at quicker pace
  • Pay pressures ease, but remain historically sharp

Scotland’s labour market saw an improvement in overall hiring activity in September, according to the latest Royal Bank of Scotland Report on Jobs survey, with recruiters reporting a fresh rise in permanent placements and stronger temp billings growth.

The seasonally adjusted Permanent Placements Index rose back above the neutral 50.0 mark, rising from 47.3 in August to 52.7 in September, to signal a mild uplift in permanent staff appointments, while temp billings increased at a strong and accelerated rate. 

At the same time, sustained growth of vacancies, combined with another deterioration in candidate availability, led to further upwards pressure on pay. Notably, both starting salaries and temp wages increased at historically sharp rates, despite easing since August.

Permanent placements return to growth

Adjusted for seasonal variation, the Permanent Placements Index rose back above the neutral level of 50.0 in September to signal a fresh rise in permanent staff appointments across Scotland. Panellists attributed the upturn to strong demand for staff and increased hiring activity amongst clients in some sectors. That said, the pace of increase was only mild.

September data pointed to sustained growth of temp billings across Scotland, extending the current sequence of upturn that began two years ago. The rate of expansion ticked up from August’s seven-month low and was solid overall.

The pace of increase in temp billings in Scotland was broadly in line with the trend seen for the UK as a whole.

Further marked drop in permanent candidate availability

The supply of permanent staff across Scotland continued to decrease in September, stretching the current sequence of contraction to 20 months. Skills shortages and high demand for staff reportedly drove the latest fall. Notably, the rate of decline quickened slightly on the month and was marked overall.

Scotland recorded a much sharper fall in permanent staff supply than that seen on average across the UK, with the pace of decline slowing slightly on the month at the national level.

Adjusted for seasonal variation, the Temporary Candidate Availability Index remained below the neutral 50.0 mark in September, signalling a nineteenth straight monthly deterioration in the supply of temp staff across Scotland and one that was rapid overall. Panellists cited strong demand for short-term workers and a reluctance among candidates to move roles. Although it remained much sharper than that seen at the national level, the pace of contraction was the slowest for six months.

Rate of starting salary inflation eases to 15-month low

September data signalled a sustained uplift in salaries awarded to permanent new joiners in Scotland, amid reports that strong demand for staff led to upwards pressure on pay. Though historically sharp, the rate of salary inflation was the slowest for 15 months, and weaker than that recorded for the UK as a whole.

A twenty-second monthly increase in hourly rates for short-term staff in Scotland was recorded in September. According to survey respondents, skills shortages were the primary cause of the latest rise. The rate of temp wage inflation softened to a four-month low, but was nonetheless sharp and outpaced the UK-wide average.

Permanent vacancies rise at slower rate

As has been the case in each month since February 2021, demand for permanent staff in Scotland increased in September. The rate of expansion was the softest seen for a year-and-a-half, albeit sharp by historical standards.

IT & Computing recorded the fastest rise in permanent vacancies, followed by Nursing/Medical/Care, while Hotel & Catering saw the slowest.

Temporary vacancies across Scotland continued to rise in September, extending the current sequence of growth to two years.  The rate of increase was the slowest since February 2021, but still sharp overall.

Across the monitored sectors, demand for temp staff was strongest in IT & Computing, followed by Accounts & Financial.

Sebastian Burnside, Chief Economist at Royal Bank of Scotland, commented: “Permanent staff appointments across Scotland rose during September following a moderate fall in August, amid reports of improved hiring activity at clients in some sectors and strong demand for workers.

“The rate of growth was only mild, but nonetheless outpaced the UK-wide average. Temp billings also increased, with growth ticking up since August to a solid pace.

“The imbalance between staff demand and supply continued to place upwards pressure on pay in September.

“The latest survey showed that both permanent and temporary staff availability continued to decline sharply, which drove further increases in temp pay and starting salaries at rates seldom seen in the history of the survey.”

Wealth growth outstrips salaries by three times

  • Average wealth has increased by 59% in the past decade while earnings have grown just 19%
  • Even among the wealthiest the value of assets has grown by 64% compared with 20% for salaries

The growth in average wealth from assets including property and investments has been three times higher than the growth in average earnings over the past decade, new analysis* from Handelsbanken Wealth & Asset Management shows.

Figures show people are being out-earned by their homes and other investments, with average wealth rising 59% over the past decade compared with 19% growth in salaries over the same period, according to Handelsbanken Wealth Management & Asset Management’s analysis of the latest Government data on Britons’ wealth and assets and earnings.

Average wealth for Britons is estimated at £575,948 after a decade of growth from £361,831, with house price rises as well as increases in pensions, investments and physical wealth including possessions all appreciating in value since 2010. By contrast, average earnings have only increased to £31,840.

For the wealthiest 25% of the population, the growth in assets has been even more impressive – they now own wealth estimated at £733,800 compared with £447,900 a decade ago. They have seen their wealth increase 34% faster than the British average, while their salaries have increased 22% faster.

Of course, the growth in wealth has not been shared equally throughout the country – the wealthiest people in London have seen their wealth grow by 77% over the period to an average £902,400, compared with £495,200 in 2010.

The top 25% wealthiest in the North East have only seen growth of 30% during the same period, taking them to an average £459,500, which equates to an increase of £105,300. Growth among the top quartile of wealthiest people in the South East was 77% during the same period, compared with 69% in the East of England and 66% in the South and Wales. The North West saw growth of 45%.

PK Patel, Head of Wealth Management at Handelsbanken Wealth & Asset Management, said: “Earnings growth has on average been constrained over the past 10 years, with most people relying on their houses, investments, and possessions to boost their wealth.

“It is fascinating to see the gulf between the increase in asset values and the increase in average earnings over the past decade, and is instructive for advisers and their clients on how to plan their finances and assess their wealth.

“No matter how your total wealth is made up, it’s important to have a clear plan on how you want to use it for your own future and for the benefit of other family members.”

Table one: wealth and salary growth for the richest quartile by UK region, 2008-10 vs 2018-20

RegionTop quartile average wealthTop quartile average salary
2008-102018-20Growth20102020Growth
North East£354,200£459,50030%27736.5£33,10819%
North West£387,400£561,40045%29272£35,25620%
Yorkshire & the Humber£376,300£556,30048%28591.5£33,89019%
East Midlands£415,500£617,90049%29442£35,20420%
West Midlands£399,200£621,50056%28654.5£35,00322%
East of England£511,500£864,70069%33006.5£38,93818%
London£495,200£902,40082%39157.5£47,42321%
South East£597,100£1,058,00077%34775.5£40,83417%
South West£485,300£805,50066%28887£34,43419%
Wales£383,900£635,70066%27845.5£33,45320%
Scotland£364,000£584,80061%30072.5£36,88923%
Great Britain£447,900£733,80064%31401£37,62520%

Table two: average wealth and salary growth by UK region, 2008-10 vs 2018-20

RegionAverage wealthAverage salary
2008-102018-20Growth20102020Growth
North East£271,385£382,37941%£22,566£27,34321%
North West£303,074£452,15149%£24,074£28,78220%
Yorkshire & the Humber£310,994£444,36643%£23,433£28,07220%
East Midlands£337,125£473,28440%£24,294£28,99719%
West Midlands£322,423£471,56446%£23,733£29,39924%
East of England£411,000£680,54966%£28,095£33,06518%
London£395,352£678,54572%£37,746£42,56513%
South East£491,410£827,56568%£29,940£35,04017%
South West£382,253£630,25865%£23,980£28,25818%
Wales£326,424£515,76758%£22,381£26,99521%
Scotland£301,504£464,68554%£24,527£30,09723%
Great Britain£361,831£575,94859%£26,751£31,84019%

Adzuna Job Market Report – April 2018

Advertised salaries grow for sixth consecutive month

  • UK average advertised salaries up– currently sitting at £33,921; up 4.3% year-on-year
  • Every region in the UK showed year-on-year salary growth
  • Total advertised vacancies at 1,109,412 – down 4.1% over six months, despite a small increase on last month
  • Construction salaries need work – advertised salaries down by 8.1% from March 2017
  • Admin salaries on the up – typical sector pay up 28.2% annually to £27,564

Continue reading Adzuna Job Market Report – April 2018

The Name Game: Singles seeking a spouse with a fat wallet should swipe right for Ed and Liz

•   Men named ‘Ed’ make the best paid dates, earning an average of £61,400 a year, the largest pay cheque of all names analysed

•   Women called ‘Liz’ also bring home the bacon, with highest average female earnings of £38,800

•   Money-hungry singletons should avoid dating those called ‘Reece’ and ‘Paige’, the lowest valued male and female names

•   Most attractive names, ‘James’ and ‘Sarah’, fail to make the list of top earners, with average salaries of £38,100 and £29,800 respectively

Valentine hopefuls looking for a partner with a large pay cheque are best off dating men called Ed and women named Liz, according to new research by job search-engine Adzuna. Continue reading The Name Game: Singles seeking a spouse with a fat wallet should swipe right for Ed and Liz

Admin salaries set to outpace all other professions in Scotland in 2018

Demand for highly-skilled professionals means those in the accounting and finance and administration sector are set to experience significant starting salary increases in Scotland. According to the Robert Half 2018 Salary Guide, the competitive market for high-performing talent within accounting and finance is set to drive salaries for financial controllers (3.7%) and risk associates (3.3%) in Scotland higher in 2018. Continue reading Admin salaries set to outpace all other professions in Scotland in 2018

Want to join the £100K club? Being male will help

  • 86% of employees bringing in over £100k are men

  • 23% of £100k earners have no degree, but management experience is a must

  • Almost 60% of £100k club have experience in IT, Finance or Sales

Male university-educated employees with over a decade of management experience within IT, Sales or Finance stand the best chance of joining the £100k club, according to recent research by jobs search engine Adzuna.

The study analysed the skills and experience contained in over 10,000 CVs earning a salary of £100,000 or more (before tax) uploaded to Adzuna’s ValueMyCV tool.

Every CV studied contained substantial experience, with the average CV of high earners detailing 19 years of experience. And to climb the pay scale you’ll need to take control of much more than just your own career, as the average top end earner has racked up 13 years of management responsibilities.

Meanwhile a mere 14% of Britain’s top-earning CV’s belong to female workers, making the £100k club resemble something of a Gentleman’s Club.The low figures come on the back of a survey conducted by Adzuna, which showed men in the workplace were more likely to ask for a payrise and promotion.

Doug Monro, Adzuna cofounder commented: “The UK gender pay gap may be at its lowest ever level, but our study shows men still account for a starkly unequal share of high earners.

“While the government’s recent ruling that large employers publish their gender pay gap will go some way to combatting this, predictions suggest the gap will take 70 years to close. It’s clear there’s plenty of work to be done to ensure pay parity at both ends of the scale.”

Degrees Not Always Necessary For Higher Pay Grade

Qualifications played less of a central role to top earning potential than gender, with just under a quarter (23%) of top ranking employees not holding a degree.

Those without a degree had worked longer to join the £100k club, however, spending on average 22 years in employment, compared to the 18 years worked by their university-educated counterparts.

IT and Finance Lead Way For Top Earners

Workers in the IT industry were the most common among the sample of £100k CVs, with those in Finance and Consultancy not far behind.

The top job titles for £100k earners features several director titles, while CEOs rounded out the top 5. Less common job titles among the selection of £100k earners included procurement directors, security analysts and communication officers.

Sectors With Largest Share of £100k Earners

Sector

Share of 100k Club

IT

19%

Finance

19%

Consultancy

12%

Engineering

5%

Sales

5%

 

Top 5 Job Titles of £100k Earners

1

Managing Director

2

Director

3

Operations Director

4

Finance Director

5

CEO