London sees record rise in permanent jobs as the capital re-opens for business
The number of permanent available jobs was at a record high in London last month, marking an improved confidence among businesses as coronavirus restrictions in the capital ease.
Recruitment consultancies in London indicated a third successive rise in permanent placement during May, as firms stepped up hiring in response to an easing of lockdown measures, according to the latest data from KPMG and REC.
Although the number of job vacancies was up, the supply of permanent workers fell sharply last month in London, ending a 13-month run of growth.
The declined of available staff was steep, and the quickest for one-and-a-half years.
Recruiters linked the drop in availability to the increased number of jobs, fewer EU candidates and unwillingness of employees to search for new jobs.
London suffered during pandemic
Kate Shoesmith, deputy CEO of the REC, said permanent placements in London were growing at the fastest rate she had ever seen.
“So now is the time for action,” she said. “With demand spiking, the skills and labour shortages that already existed in the UK have come into sharper focus – and Covid has only made them worse.
“This is the most pressing issue in the jobs market right now, and has the potential to slow down the recovery.”
Shoesmith said employers should think about how they can attract the staff they need, for example by looking at the wage and benefits package they offer, with more flexible or hybrid working strongly in demand.
She continued: “But government also needs to urgently look at improving access to work and opportunities for everyone to participate in training that will lead to a job.
“This should start with careers information that signals where job openings are being created and funding for the relevant work-related training.”
Mark Hilton, executive director for people at campaign group London First, added: “It is great to see confidence rising among firms in London, but it could be short-lived if there isn’t the staff to fill them.
“The capital lost more jobs than any other region during the pandemic – and with vacancies to fill, the government should create a targeted reskilling programme, to support those who have lost their jobs.”