Permanent placements fall at slowest pace in three months – report

A key survey into the jobs market signalled a much softer reduction in permanent placements across the Midlands at the midway point of Q3 2025.

The KPMG and REC, UK Report on Jobs: Midlands is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

The report says temp billings increased for the third time in the past four months, albeit only marginally.

At the same time, recruiters suggested that fewer vacancies and redundancies had contributed to a sharper increase in permanent candidate availability, though recruiters noted a renewed rise in demand for temporary workers during August.

On the pay front, the rate of permanent salary inflation accelerated since July, reaching the strongest since April 2024.

Temp pay increased at the strongest pace since May.

August data signalled a further decline in the number of permanent placements made by recruitment agencies in the Midlands.

Permanent staff appointments were reportedly down due to weaker demand for staff and fewer vacancies.

The pace of decrease eased sharply from July, however, and was only modest.

Across all four monitored English areas, the Midlands saw the softest drop in permanent placements.

Temp billings across the Midlands increased for the third time in the past four months midway through the third quarter.

Panellists generally attributed the latest rise to improved demand for temporary workers. The rate of increase was only marginal, however.

The rise in temp billings in the Midlands bucked the wider UK trend, with the three other monitored English regions recording sustained falls.

Permanent vacancies in the Midlands decreased for the 15th consecutive month in August.

Temporary vacancies in the Midlands, meanwhile, rose for the third time in four months in August – in contrast to a solid fall at the national level.

Permanent starting salaries in the Midlands increased again in August, thereby extending the current sequence of inflation that began in March 2021.

The rate of pay growth accelerated sharply from the previous survey period and was the steepest seen since April 2024.

The rise in salaries was often linked by recruiters to efforts to attract suitably skilled staff.

The pace of salary inflation in the Midlands was notably stronger than the UK average.

Kate Holt (pictured), People Consulting partner at KPMG in the Midlands, said: “For the first time in a long time, the Midlands job market is showing tentative signs of recovery, testament to the adaptability and resilience of the businesses operating in the region.

“Permanent placements are still decreasing, but at a much slower rate – the softest decline of any monitored region.

“Temporary hiring continues as a critical lever for flexibility. Indeed, demand for temporary staff is still rising, and temporary billings are increasing in tow.

“Employers are also navigating a shifting talent landscape, with increased candidate availability creating new opportunities to rebalance teams and manage costs more strategically.

“Pay pressures remain, but more than ever, they’re reflecting a proactive approach from employers to secure essential skills amid ongoing uncertainty.”