Permanent staff appointments fall markedly in March – report
The latest KPMG and REC UK Report on Jobs survey, compiled by S&P Global, pointed to a fourth consecutive monthly decrease in permanent placements in the Midlands during March.
Sustained falls in permanent placements contributed to a further marked rise in candidate availability at the end of the first quarter of the year, extending the current sequence of higher permanent candidate supply to a year.
There was also a steeper increase in the rate of permanent starting salary inflation, however the rate of increase remained well below the average seen over the course of the current 37-month sequence of higher salaries.
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.
Permanent placement placements fell in the Midlands for the fourth month running in March.
The rate of decrease quickened sharply from February and was marked overall. Some respondents indicated that lower demand for staff, recruitment freezes and redundancies had contributed to the latest fall in placements.
Recruiters in the Midlands recorded a reduction in temporary billings at the end of the first quarter of 2024.
Demand for staff in the Midlands saw a renewed increase during March. The rate of increase in permanent vacancies was only modest, yet the strongest recorded in 2024 so far. Moreover, the Midlands saw the steepest rise in vacancies of the four monitored English regions.
The rate of growth in demand for temporary workers accelerated from the previous survey period.
The number of candidates available for permanent roles increased markedly during March, with the latest rise extending the current sequence to a year. Respondents indicated that redundancies had been one of the main factors behind the rise in candidate numbers.
Recruitment companies in the Midlands reported that the end of projects and a smaller appetite for taking on temp staff had led to a further rise in temporary candidate availability. That said, the rate of increase was the softest since last September.
Salaries for permanent new joiners continued to rise sharply in March, with the rate of inflation quickening from that seen in February. That said, the latest rise was softer than the series average.
Recruitment companies in the Midlands signalled a further rise in temporary pay rates at the end of the first quarter of 2024. The rate of inflation was only modest and eased to the lowest recorded since January 2021. The increase in temp wages was the second-weakest of the four monitored English regions, ahead of London.
Commenting on the latest survey results, Kate Holt (pictured), people consulting partner for KPMG in the Midlands said: “This month’s data presents an interesting picture – there’s a growing demand for staff in the region but actual placements are still falling.
“Part of the reason for uncertainty in the market is a slower economy accompanied by skills shortages.
“Businesses in the Midlands currently have a stronger focus on hiring senior and strategic candidates who are in short supply.
“There are still challenges, but businesses stand ready for growth when the Bank of England makes its interest rate cuts. This will boost business confidence to invest, and the economic outlook will become more positive.”
Neil Carberry, REC Chief Executive, said: “Economic growth has been sidelined for too long and must be at the heart of this year’s election campaign.
“Thw data shows the economy in a holding pattern waiting for inflation and interest rates to ease, so that firms can get to investing.
“The decline in permanent placements in the Midlands has been steady for some months now, with temporary recruitment still robust, if falling back from the record highs of 2022/3.”
