Midlands hiring activity increases sharply - report

The Midlands experienced a sharp increase in hiring activity at the close of the fourth quarter of 2020, according to KPMG and REC 's latest Report on Jobs.

Both permanent placements and temp billings rose markedly, amid reports that companies were filling vacancies following pandemic related hiring freezes.

Meanwhile, candidate availability continued to improve, although the rate of increase for both permanent and short-term staff eased on the month.

Turning to pay, permanent starting salaries were broadly stable in December, while the rate of temp wage inflation was the quickest since February amid a rapid upturn in demand for short-term staff.

The report is compiled by IHS Markit from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

Following a mild reduction in the previous survey period, the number of permanent staff appointments across the Midlands rose during December.

Moreover, the rate of increase was elevated in the context of the series history and sharp.

Companies were now filling vacancies following coronavirus disease 2019 (Covid-19) related hiring freezes, according to respondents.

Across the four monitored English regions, the Midlands registered the sharpest increase in permanent placements in December.

Recruiters in the Midlands recorded a further rise in temp billings during December, extending the current sequence of increase to six months. Panellists noted that some firms were taking on staff in anticipation of higher demand. The latest rise was sharp, albeit the slowest since September.

Temp billings also rose at the UK level in December, but the upturn was slower than that in the Midlands.

The number of permanent vacancies across the Midlands declined for the third month running during December. That said, the rate of decline eased noticeably from November.

Meanwhile, demand for temp staff continued to rise at the close of the fourth quarter, with the rate of increase the quickest since September and sharp. At the regional level, only the North saw a faster rise in temporary vacancies than the Midlands.

December data highlighted another increase in the availability of permanent candidates in the Midlands, amid reports that redundancies and company closures had led to a surge in job seekers. The rate of increase slowed for the fifth month running, but was nonetheless marked overall.

Across the four monitored English regions, the Midlands saw the softest upturn in permanent staff supply during December.

As has been the case in each of the past nine months, recruiters in the Midlands registered an increase in temp staff supply during December. According to panellists, Covid-19 related lay-offs and redundancies resulted in a greater number of job seekers. Although still solid, the rate of increase was the slowest in the aforementioned sequence.

As was the case for permanent staff, the Midlands recorded the slowest rise in temp staff supply across the four monitored English regions.

Following eight consecutive monthly reductions, average salaries awarded to permanent new joiners in the Midlands were broadly stable in December. The respective seasonally adjusted index gained nearly four points on the month and registered only just below the 50.0 mark.

Recruiters in the Midlands signalled an increase in average hourly pay rates for short term staff for the first time in three months during December. Notably, the rate of wage inflation was the quickest since February and sharp.

Temp wages also rose at the UK level during December, although the rate of increase was much faster in the Midlands.

Kate Holt (pictured), people consulting partner at KPMG, said: “As anticipated, news of a vaccine has helped to boost business confidence across the Midlands, and this has had a knock-on effect on hiring.

“What 's encouraging to see, alongside the increase in demand for temp staff, is the rise in permanent job placements, which suggests that businesses are hiring with the long-term in mind.

“However, the recent lockdown is sure to fuel economic uncertainty, alongside preparing for the new relationship with the EU and this will be weighing on the minds of business leaders and recruiters.

“That being said, there is hope for businesses and jobseekers as financial support from government continues and the vaccine rollout progresses. ”