Job vacancies grow at fastest pace for four months, says study

Jobs growth has shown the biggest rise for four months, although firms are increasingly worried about skills shortages, according to research.

Information from 400 recruitment firms also showed an increase in vacancies and higher pay for new recruits.

The Recruitment and Employment Confederation (REC) said temporary nurses, medical and care staff were most in demand, while construction firms were suffering a "chronic" skills shortage.

Vacancies increased at a "marked" pace last month, while the availability of staff fell, particularly among temporary and contract workers.

The biggest demand for permanent staff was in the Midlands and the North, especially in private firms.

%VIRTUAL-ArticleSidebar-jobs-guide%REC chief executive Kevin Green said: "The jobs-rich recovery looks set to continue, with more people being placed into permanent positions last month and businesses across the UK creating more vacancies.

"However, there remains a big question about sustainability. Employers report an increasing number of skills shortage areas in both the public and the private sector. Starting salaries continue to rise as businesses battle to attract the people they need but it's unclear how much longer this trend can continue.

"The Government must focus on alleviating the skills crisis which threatens economic growth. We need a balanced approach to immigration so that businesses can bring in the people they need right now. Domestically, young people must be better incentivised to acquire the knowledge and skills that are needed most by hirers. A real commitment to delivering world-class careers advice and work experience would be a big step in the right direction."

Bernard Brown, of KPMG, which helped with the report, said: "While hiring continued at pace across most areas of the economy, the figures point to a worrying development in the construction sector.

"It is clear the industry is suffering from a chronic skills shortage along its entire supply chain, with recruiters struggling to meet demand for roles ranging from architects to construction workers. As a result salaries in the sector are soaring, with the average weekly rise reaching 5.1%, vastly outpacing the private sector average of 3.4%.

"With Britain in the grips of a housing crisis, this shortage of skilled workers could throw a serious spanner in the works, slowing projects in the pipeline and pushing up overall build costs as developers bid high to secure the labour they need.

"Businesses will want to see this addressed in the Autumn Statement, with measures to boost apprenticeships and encourage the return of small and medium-sized builders, many of whom left the industry in the midst of the recession."

Employment Minister Priti Patel said: "We have marked a milestone in our long-term economic plan with record employment and strong growth in wages.

"This report recognises, areas all across the country are seeing the benefits of the growing economy.

"This one-nation Government will continue to reform welfare to incentivise work and ensure people have the skills and experience that businesses need."