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Engineering Job Market News – July 2015

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Permanent placements continue to rise, but rate of growth eases to 26-month low.

The Report on Jobs survey by Markit; for July reported that it was a busy month in the Engineering sector.
Engineers seeking permanent positions were the most in demand of all employees across all employment sectors; just ahead of those in construction.  

For Engineers key points of interest in the July report were:

Demand for staff softens 
Overall vacancies for engineers increased at the slowest rate in two years during July.
The numbers of engineers placed in staff appointments were held back by skill shortages
Salary growth was at an 18-month low

Permanent Staff
Starting salaries for permanent hires continued to rise in July; however the rate of increase moderated further from April’s recent peak to an 18-month low.
Engineering employees were the most sought-after type of permanent staff in July, closely followed by Construction workers.

Temp/Contract Staff 
Temporary/contract rates growth quickened to the fastest since April2015.
Vacancy growth remains strong, despite easing to two-year low.
Construction led a broad-based rise in demand for temporary/contract staff in July with demand for engineers coming third.


Commenting on the latest survey results, Bernard Brown, Partner at KPMG, said:

“It is clear we are in the grip of an industry wide skills shortage, which shows no signs of abating. Businesses are struggling to find the talent they need and this will have long term implications for their growth plans and potentially impact the wider performance of the UK’s economy.

“The construction industry in particular is struggling to keep pace with demand, with businesses heavily recruiting both permanent and temporary workers. This is driving significant pay growth in the sector of almost 5%

“The risk is that a shortage of skilled labour in this sector could impede Britain’s major building projects

The Report on Jobs is a monthly publication produced by Markit and sponsored by the REC (Recruitment and Employment Confederation) and KPMG LLP.

Copies of the report are available on annual subscription from Markit. Email: