Sharp decline in permanent staff appointments across Midlands - survey
The Midlands region experienced a sharp drop in permanent job placements during March, according to a new survey.
That’s according to the latest KPMG and REC, UK Report on Jobs: Midlands survey, compiled by S&P Global.
However, temp billings rose further, with the pace of expansion accelerating to the fastest in 2026 to date.
Recruitment consultancies based in the Midlands noted a sharp drop in job openings, with both permanent and temp vacancies declining at more pronounced rates.
Meanwhile, redundancies contributed to a steeper increase in permanent candidate availability, as well as a fresh rise in temp staff supply.
In terms of pay, starting salaries rose only slightly, while temp wages increased at a stronger pace.
Nevertheless, in both cases, rates of pay growth remained historically muted.
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.
Recruitment consultancies in the Midlands recorded a second straight monthly fall in permanent placements in March.
The rate of contraction quickened notably on the month to signal the most pronounced reduction since last October.
According to anecdotal evidence, the latest decrease in permanent staff appointments was due to economic uncertainty and a general slowdown in permanent hiring activity.
Of the four monitored English regions, the South of England was the only other area to observe a fall in permanent placements.
The North of England meanwhile recorded a sustained upturn, while a renewed rise was seen in the capital.
March data signalled a rapid rise in temp billings across the Midlands, which stretched the current run of increase to eight months.
Moreover, the rate of expansion was the second-fastest since May 2022, behind only last December.
The latest uptick was partly linked by recruiters to a greater preference for flexible workers.
The Midlands was the only monitored English region to register growth in temp billings.
A 22nd consecutive monthly deterioration in demand for permanent workers was noted across the Midlands in March.
The downturn was rapid and the steepest in just over a year.
Temp staff vacancies in the Midlands fell for a third straight month during March. Furthermore, the rate of reduction was the sharpest seen since May 2020.
Of the four monitored English regions, the Midlands recorded the strongest reductions in both permanent and temp vacancies.
The Midlands also recorded the weakest upturn in temp worker supply of all four monitored English areas. London recorded the strongest expansion and by a notable margin.
Kate Holt (pictured), people consulting partner at KPMG in the Midlands said: “March’s figures point to a Midlands labour market still under pressure, with permanent hiring slowing more sharply as businesses weigh economic uncertainty and rising costs against longer-term recruitment plans.
“However, the strong rise in temp billings suggests demand has not disappeared, with many employers opting for flexibility while the outlook remains unclear.
“This caution is reflected in the wider market picture. The Midlands saw the steepest decline of any English region in both permanent and temporary vacancies, while candidate availability continued to rise as redundancies fed into the labour pool, creating a more competitive environment for jobseekers.
“While employers may be holding back on permanent headcount, ongoing demand for temporary staff highlights underlying workforce needs.
“The key question now is whether improving economic confidence can translate this short-term activity into more sustained hiring.”
