ICAP’s UK Labour Market Indices reflect a stable June but anticipate challenging times ahead for UK employment

17 July 2012

London,  July 17th, 2012  – ICAP, the world’s leading interdealer broker and provider of post trade risk and information services, has today released June data for the new UK Labour Market Indices (UK LMI) which implies a negative outlook for UK employment after recent signs of improvement.

ICAP’s UK LMI Vacancy Index, an indicator for near-term employment shows a 7% decline for June. The UK LMI also reports an increase in applications per vacancy, suggesting further increases to unemployment count.  This negative outlook follows recent stability and current positive employment figures highlighted in ICAP’s Employment Index.

Sector Analysis – Banking
The detailed UK LMI breaks down vacancy and offered salary data for 48 sectors, such as retail, public sector, manufacturing, engineering and financial services. This can be used to understand hiring patterns within each sector, reflecting confidence and trading conditions, and can be a good indicator of financial performance.

In June, the banking sector reports a 16% and 19% reduction in permanent and temporary vacancies respectively.  Banking is one of the worst hit sectors for reduced recruitment demand  – a key indicator for near-term confidence.  These declines compound what has been a difficult 18 months for the sector, with hiring demands falling heavily since early 2011 to levels last witnessed back in 2009 during the fallout of the financial crisis.  


 
Headlines from the June data release

 

   Jun-12 Index Description
UK LMI Unemployment Index 2.43% Uses the number of applications/vacancies during June 12. The index is a timely indicator for current jobseeking levels and correlates with the ONS Unemployment Claimant Count.
UK LMI Vacancies Index -7.17% Uses the number of advertised vacancies during June 12 to produce a timely indicator for current hiring levels by employers. The index is a leading indicator for future employment figures and correlates with the ONS Vacancies figure.
UK LMI Offered Salaries Index -1.53% Sector-weighted average of offered salaries.
UK LMI Employment Index 12.76% Uses the number of advertised vacancies during April 12 to produce a timely indicator for employment levels during June 12. The index correlates with the ONS Employment figures.


  
Sector highlights from the June data release

Permanent Vacancy Growth by Sector
Apr-Jun 12 vs. Jan-Mar 12


Top 5 sectors      


 Bottom 5 sectors  
                 

 

 

 

Temporary Vacancy Growth by Sector
Apr-Jun 12 vs. Jan-Mar 12


Top 5 sectors       


 Bottom 5 sectors       
           

About the ICAP UK Labour Market Indices (UK LMI)

Accurate, detailed and time critical labour market information derived from a unique source of UK employment information covering in excess of 60% of all job advertisements. The ICAP UK Labour Market Indices (UK LMI) data provides an unparalleled view of key trends occurring in the UK labour market.

Core UK LMI - grouping of unique indices, made up of:

• The UK LMI Unemployment Index: uses the number of applications/vacancies to produce a leading indicator that anticipates the ONS Unemployment Claimant Count
• The UK LMI Vacancies Index: uses the number of advertised vacancies to produce an indicator that anticipates the ONS Vacancies figure
• The UK LMI Offered Salaries Index: sector-weighted average of offered salaries
• The UK LMI Employment Index: uses historical correlation between changes in numbers of advertised vacancies and official ONS Employment figures to produce a leading indicator for the labour market that anticipates the upcoming official figures.

Detailed LMI – includes the indices from the Core UK LMI, as well as additional detailed vacancy and salary information for 48 sectors and various regions across the UK.

For further information, please contact ICAP Information Services on:
Europe, Middle East, Africa +44 (0) 20 7000 5880
Email icapinformationservices@icap.com or visit www.icapinfo.com

Contacts:

 

 

Serra Balls  Head of Public Relations +44 (0) 20 7050 7124
Alex Dee Head of Investor Relations +44 (0) 20 7050 7123
Andrea Coleman Maitland +44 (0) 20 7395 0420

About ICAP
ICAP is the world’s leading interdealer broker and provider of post trade risk and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com.

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