Temp and permanent IT staff still in demand, reveals KPMG report

Demand for permanent IT staff is the third-strongest in a survey of nine sectors, according to a report by consultancy KPMG and the Recruitment & Employment Confederation.

With a reading of 50 in the survey indicating no change, permanent IT staff registered a six-month high of 66.9 in April 2015. Executive/professional staff ranked in first place for demand of permanent staff, posting 68.8.

Partner in the CIO advisory practice at KPMG, Heath Jackson, said there has been a resurgence of recruitment into Britain's boardrooms, with businesses recruiting "top talent" to drive their companies forward. 

"This surge of executive hires is a strong indication of underlying business sentiment and their ambitions for the future,” he said.

Demand for permanent staff in IT was not the only area to show growth, with demand for temporary IT staff rising from 62 in March 2015 to 62.2 in April 2015. However, the reading was still below the national average of 64.

In April 2014, engineering was ranked as number one for demand in staff, but it dropped to fourth place in 2015, with nursing/medical/care ranking first at 68.7.

“The declining pool of available labour continues to force pay up," said Jackson. "With nearly one in two recruiters in the UK reporting falling candidate availability, spiralling salary growth remains a concern as businesses bid against each other to secure skilled staff.”

According to the Tech Monitor UK survey from KPMG and financial information firm Markit, new business volumes rose at the slowest rate since mid-2013 in the first quarter of 2015, but more than two-fifths of businesses anticipate an increase in their hiring numbers over the next year.

The UK Business Activity Index was 55.7 in the same quarter, a drop from 59.6 in the fourth quarter of 2014. The survey’s record high was in the first quarter of 2014, which was recorded at 60.5.