Permanent placements across Midlands rise slightly – report

Recruitment activity has continued to rise across the Midlands in January, but at a slower pace.

This is according to the latest KPMG and REC, UK Report on Jobs, compiled by S&P Global.

Notably, both permanent placements and temp billings expanded at softer rates than those seen in December.

Concurrently, the availability of both permanent and temporary workers increased at weaker rates. Nevertheless, candidate supply continued to rise markedly overall, with anecdotal evidence highlighting redundancies as a key driver of growth.

Demand for labour meanwhile deteriorated, with temporary vacancies declining for the first time in six months.

Finally, pay pressures eased across the Midlands in January, with both starting salaries and temp wages increasing at slower rates that were weaker than those seen nationally.

Recruiters in the Midlands signalled a marginal increase in permanent placements in January.

The respective seasonally adjusted index posted above the neutral 50.0 level for the second successive month, but edged down from December.

Where a rise was noted, respondents partly attributed this to a relative improvement in client confidence following November’s Budget announcement, which had lifted some uncertainty.

Once again, the Midlands was the only monitored English area to record a rise in permanent staff appointments.

A sixth consecutive monthly rise in billings received from the employment of temp workers was recorded across the Midlands in January.

The Midlands recorded the strongest rise in temp billings of all four monitored English regions. The South of England was the only other area to report an increase. Meanwhile, London and the North of England recorded further reductions.

Permanent vacancies fell for a twentieth consecutive month across the Midlands in January.

The pace of decrease was the fastest since last August and sharp overall.

Additionally, demand for temp workers fell for the first time in six months during January.

The pace of decrease was solid, albeit the weakest of the four monitored English regions.

However, the latest survey data revealed that vacancies fell more sharply across the UK as a whole.

A marked increase in permanent staff supply was recorded across the Midlands in January.

Moreover, the pace at which permanent staff supply increased across the Midlands was slower than the UK-wide average.

The availability of temporary/contract staff rose sharply at the start of the year.

Slower rises in temp staff availability were also seen across the three other monitored English areas.

The seasonally adjusted Permanent Salaries Index remained above the neutral 50.0 value in January, indicating an increase in starting salaries across the Midlands for nearly five years.

The Midlands also recorded the softest rise in starting salaries of all four monitored English areas. Starting salary inflation was the strongest across the North of England.

January data revealed a further rise in temp wages across the Midlands, with increases recorded in 13 of the last 14 survey periods. The pace of inflation was solid, albeit slightly weaker than that seen at the end of 2025.

For the first time in eight months, all four English regions monitored by the survey recorded higher pay for short-term staff, with London leading the upturn.

Kate Holt (pictured), people consulting partner at KPMG in the Midlands said: “The Midlands has started 2026 in a strong position, reporting growth in permanent placements for the second consecutive month – remaining the only English region to do so.

“While the increase had softened, it reflects momentum and confidence among Midlands employers that sets the region apart from the rest of the country.

“Temporary billings also continued to expand, achieving their sixth consecutive month of growth.

“What's notable is the shift in pay dynamics – temp wages rose sharply, the strongest increase across all monitored regions, signalling demand for flexible skills in the face of broader economic uncertainty.

“For Midlands businesses, this combination of steady permanent hiring and strategic use of temporary staff positions the region well to capitalise on a brightening outlook and start planning for the longer term.

“The ability to access a strong talent pool while maintaining flexibility gives forward-thinking employers a genuine competitive advantage for the year ahead.”