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January 20th, 2021

Growth of permanent labour supply continues to ease

Recruiters in the North of England recorded a further increase in permanent staff availability in the final month of 2020, extending the current run that began in February. However, the rate of growth eased for the fourth month running to reach the softest since April.

Slowest increase in temporary staff availability for nine months

Although the availability of temporary staff in the North of England continued to rise sharply in December, the rate of growth eased to the softest since March. The latest increase was, however, quicker than the UK-wide average. Some recruiters commented that the higher supply of temporary workers was linked to redundancies driven by the COVID-19 pandemic.

Permanent starters’ salaries continue to decline in December

Starting salaries awarded to permanent workers in the North of England fell for the ninth month in succession during December. The rate of decline was slightly quicker than in November, but remained modest overall. Anecdotal evidence suggested that demand for workers remained relatively subdued compared to the volume of job seekers.

Quickest rise in temp wages since February

Remuneration for temporary staff in the North of England increased for the first time in three months at the end of 2020. Moreover, the rate of wage inflation was the quickest seen since February and slightly faster than the UK average.