Perm jobs market expected to power ahead, says Dodd after reports 28% rise

Permanent jobs growth is set to continue for up to two years, according to an economist specialising in the staffing sector.

Wed, 7 May 2014Permanent jobs growth is set to continue for up to two years, according to an economist specialising in the staffing sector.

The prediction from Sue Dodd, director of Agile Intelligence, comes after figures from job board showed permanent job growth powering ahead in April. The number of new permanent job vacancies rose by more than 28% in the month compared to April last year, according to the job board.

The growth in permanent jobs was broadly based, with every region of the UK recording a rise of at least 16%.

So far this year, the number of permanent jobs available has grown by over 21% compared to the 2013 average. At the same time, temporary jobs and contract positions have both risen by 16%.
Dodd tells Recruiter: “The growth in the permanent market is well supported by what we are hearing from companies, and is clearly supported by workforce evidence", adding that "as business confidence has increased, there has been more willingness to make permanent hires.

“As the jobs market picks up, we can expect this to continue for a year or two with the perm market remaining healthy, depending on the economic cycle.”

However, she adds that it is not likely to be as clear-cut as permanent job growth continuously outstripping temporary jobs. “We can expect a few cross-over points, where temporary jobs move ahead of permanent jobs due to factors such as seasonality,” she explains.

Dodd adds that while the permanent market is showing signs of recovery, it is recovery from “a very weak base”.

According to the report, overall April saw new jobs in the UK grow by 28% year-on-year, with significant gains in transport & logistics (up 81%), construction & property (up 65%) and security & safety (up 61%).

Sector and region snapshot:

Top 5 sectors year-on-year                     Top 5 regions year-on-year
1. Charity & Voluntary 93.6%                     1. Wales 36.6%
2. Transport & Logistics 80.8%                2. North-West 33.0%
3. Construction & Property 64.8%            3. South-West 33.0%
4. Security & Safety 61.3%                         4. East Anglia 32.9%
5. Legal 60.5%                                             5. South-East (excl London) 29.8%

The latest figures from build on recent evidence that the perm market is returning to health. Last month [April], the Recruitment & Employment Confederation’s JobsOutlook survey indicated that 76% of employers plan to hire permanent staff during the next quarter.

The Reed Job Index of new vacancies, which is compiled every month using data from more than 180,000 live vacancies advertised on, stands at 196. This compares with 153 in April last year.

Overall, more than 555,000 permanent and 88,000 temporary jobs have been advertised on since the start of the year, while 62,000 contract positions have been offered.

James Reed, chairman of, says: "We've seen a marked rise in the creation of permanent jobs since the start of the year, as employers gain confidence and make long-term growth plans for their businesses.

"While there continues to be much debate about zero-hour contracts, this shouldn't hide the good news that UK employers are increasingly committed to recruiting permanent staff as the recovery takes hold. Candidates entering the market now have a wider choice of vacancies than at any time in the last five years.”

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