The latest Labour Market Outlook (LMO) from the CIPD and Success Factors shows that both permanent and temporary/contracting roles will continue to grow in the second quarter of 2013, although competition for each vacancy is also on the rise.

Since Q1 2013 there has been a rise of four points (from +9 to +5) in the ‘net employment balance’ – the difference between the percentage of employers planning to hire more staff and those planning to reduce headcounts. The overall figures conceal stark differences between the net balance for private and public sectors, however, with the former rising from +16 to +21 – the fifth consecutive quarter of growth – while the latter will see a further drop to -32.

Competition for advertised vacancies is soaring at the low skills end of the market, with around 45 applicants applying for each role. Skilled Umbrella Company Employees, however, are also likely to face keen competition for assignments: the survey reveals that even though the use of temporary/contracting roles is set to increase in Q2, every opening for highly-skilled professionals attracts around ten applicants. Medium skilled vacancies are attracting around 29 candidates per opening.

Over one-third of new roles in Q2 will be temporary/contacting positions, the survey suggests, although temporary recruitment in the public sector will be stronger than in the private sector. It states:

“Recruiting for temporary roles is significantly more prevalent in the public sector (35%) than in the private sector (26%).”

Consultancy services and IT roles will see especially strong growth, the LMO forecasts, with the net employment balance for each set to rise to +36 and +25 respectively.

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