This is according to the Recruitment and Employment Confederation’s (REC) latest employers’ survey, JobsOutlook.

A total of 67% of employers surveyed say they have short-term plans to increase their permanent workforce over the next three months, compared to 74% last month.

With regards to longer prospects, 49% of employers expect to expand their permanent hires over the next twelve months which compares to 66% last month.

A further 42% expected staffing level to remain the same which indicates that 91% of employers expect to maintain or increase their permanent workforce over the coming year.

Employers’ long-term demand for temporary staff has risen with 83% of employers saying their use of agency workers will either grow or stay the same during the next 12 months. For the short-term, 79% surveyed foresaw either taking on extra agency staff or keeping current levels static.

The overall number of temporary workers in the UK is at an all-time high at 1.6 million, giving employers increasing options to flex their workforce while the current economic conditions prevail.

The impact of the public sector cuts on private sector jobs remains a concern. A total of 20% of private sector employers now say they will have either a quite serious or serious impact on them. This is in addition to the direct impact of cuts on jobs in the public sector where 66% of employers believe the impact on them will be quite serious or very serious.

“The fact that employers have reviewed their permanent hiring intentions this month is clearly a reflection of the uncertain economic context,” Roger Tweedy, the REC’s Director of Research said.

“However, overall confidence remains at the same level as this time last year and it is interesting to note that the number of employers planning to maintain or increase their permanent workforce over the coming 12 months still stands at over 90%.

“With the economy continuing to stagnate, businesses will understandably remain cautious which is why we are seeing an increase in the longer tem demand for flexible staff such as temporary and contract workers. This is a timely reminder of how a flexible workforce can help employers meet peaks and troughs in demand for services and products during uncertain times.”

Contributed by: http://www.freshbusinessthinking.com/

The Report on Jobs (excerpt below), a monthly publication produced by Markit Economics and sponsored by the Recruitment and Employment Confederation and KPMG LLP shows:-

Stronger rise in demand for staff

The Report on Jobs Vacancies Index signalled an increase in overall demand for staff for the fifth month running in February. Moreover, the rate of growth accelerated to the strongest since July 2007. This was indicated by the Overall Staff Vacancies Index climbing from 61.5 to 62.4.

Permanent staff vacancies

Demand for permanent staff continued to rise during February. The Permanent Staff Vacancies Index recorded 62.7, up from 61.7 in January and its highest level for over two-and-a-half years.

Copies of the report are available on annual subscription from Markit. For subscription details please contact: economics@markit.com Tel: +44 1491 461000

Re-printed with kind permission of Markit

They are being notified across the commercial finance sector with a number of new entrants helping to re-energise the market.

A further positive signal is the number of employed candidates who are now looking for a career move, reflecting a measured confidence returning.

Key points from January survey:

• Growth of permanent placements eased from December’s peak but remained strong
• Temporary/contract staff billings continued to rise at marked pace
• Demand for staff grew at strongest rate since July 2007
• Candidate availability increased at slower pace
• Pay pressures remained subdued

Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG said:

“The UK jobs market is continuing its journey back to health. Placements of permanent and temporary jobs have been rising again in January although at a slower pace than a month before, a reminder that the road to recovery will be bumpy. As confidence has returned to the private sector the starting gun for a public sector recession has only just been fired and its impact on the jobs market will be felt over the next 12 to 18 months.”

Copies of the report are available on annual subscription from Markit. For subscription details please contact: economics@markit.com Tel: +44 1491 461000

Re-printed with kind permission of Markit

Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG said:

“The UK jobs market looks healthier today than at any time in the last two years which is, of course, encouraging news. Sectors like accounting and banking lead the recovery and we may well have reached the tipping point into growth, driven by returning confidence in the private sector.

“However, we are still to see the impact of the looming public sector recession on the jobs market, which will play out over the first twelve months of a new parliamentary term.”

Copies of the report are available on annual subscription from Markit. For subscription details please contact: economics@markit.com Tel: +44 1491 461000

Re-printed with kind permission of Markit

“There has always been a residual level of corporate failure but the current market is scary – it’s difficult to know what kind of staffing levels to implement,” he said. “We are drafting people in from the property finance and private equity departments, so there is a place for adaptable corporate finance staff, but the resourcing side could become an issue.” Phil Duffy, partner at corporate restructuring firm MCR, said the market was the busiest he had seen in 20 years.

Contributed by:  Insider Daily: Business news from the North West, 10^th March 2009  www.insidermedia.com

and how can struggling companies and those in the market for new challenges survive in stormy times? Bonnie Yuill assesses the situation.

In all probability it’s not as bad as it seems. The finance industry, resilient and innovative as ever, is getting back to basics and swiftly taking stock of its position. Rebranding and redeployment will probably be the name of the game for some time to come as companies are increasingly finding it difficult to access trained and experienced staff. Recycling, another popular buzzword, makes good business sense in the current economic climate especially when it comes to recruitment. 

As the economy slows and insolvencies are on the rise, it makes sense to recycle proven workers by retraining them for recoveries, turnarounds and insolvency work. It’s no secret that we are in the midst of an insolvency epidemic, thus far largely confined to the retail, property and automotive sectors but, as with all epidemics, it is spreading rapidly. 

The goldrush is over 

Without a doubt, the changing need for certain types of skills means that the way business has been done recently will need to change, possibly forever. If it hasn’t already been swept away, cosy relationship-driven business development and the influx of sales-focused bankers is rapidly faltering in the cold light of dawn and an urgent need for other skills has become apparent. 

But there’s no need to panic. A steady hand, a steeling of nerves and some expert up-skilling will oil the wheels of the finance industry in its bid to rebuild once again. Now that the gold rush is over, professionals of whatever age are needed to roll up their sleeves and get stuck in as reinforcements in the risk, compliance, credit, collections, restructuring, turnarounds, recovery and insolvency job sectors are now needed more than ever. Of course, it may take a while for adjustments to be made. Even with the best will in the world, these vacancies cannot be filled by those currently being made redundant, as they are unlikely to have the right skills. A limited talent pipeline is therefore inevitable for some time to come, but the good news for clients and candidates alike is that these slots can be filled with the minimum fuss and delay. 

The banking and finance sector may be the hardest hit by the current global economic downturn, but with all of the aplomb expected of such venerable institutions, organisations such as large accountancy firms and banks are getting all hands on deck and redeploying where possible. 

In some of the larger mergers and acquisitions teams, for instance, the business has slowed considerably. In the past, that would have resulted in a round of redundancies. Now the firms are wisely using this time to develop their staff further and are giving them the opportunity to take secondments in other business areas or to work in more buoyant markets abroad. On the upside, they are developing their future business leaders in ways that would never have arisen without the current market conditions. 

Transferable skills 

The truth is that for many employees in the banking and finance industry, career stability is a thing of the past.  Most people in today’s workforce will have multiple careers across a number of organisations, and often several industries, throughout their working lives. As time goes on, it is likely that the financial organisations, accountants and recovery firms affected will also need to widen the net and reassess candidates’ transferable skills and marketable assets. (And, as has recently been demonstrated when certain bank bosses were grilled live on national TV, formal banking qualifications aren’t always necessary in order to secure a top job in banking…) 

By noting transferable skills such as project management, team building, and communications, while downplaying a specific industry focus, it’s always possible for candidates to be successful in other areas. Once transferable skills have been identified, running a critical eye over possible deficits in experience and/or knowledge is crucial and the right training will soon remedy the situation. 

Plenty of research into a prospective job is a good investment in order to avoid an unrealistic image of what working in a different sector involves. It is common for candidates to underestimate the value of their existing talents, so a week or so spent shadowing someone, if possible, is recommended. It’s all about matching current skill sets with current market needs. Marketing expertise, commercial acumen and sales experience are a good basis for many disciplines. Communication skills, team work, IT skills and evidence of problem solving also provide an excellent starting point for most careers. 

Article written by BONNIE YUILL (commissioned by Commercial Finance People)

For any information on recruitment issues contact Prue Heron on 0845 260 2525