Sharper fall in permanent job placements during September - but temp billings rise solidly
The number of permanent staff appointments in the Midlands fell at a quicker rate at the end of the third quarter, according to the latest KPMG and REC, UK Report on Jobs.
In contrast, there was a stronger and solid rise in temp billings that was the quickest since November 2024.
The supply of candidates continued to rise markedly, though demand for permanent and short-term staff diverged.
While permanent vacancies fell sharply, Midlands-based recruiters recorded a slight increase in temp vacancies.
On the pay front, starting salaries rose solidly in September, though the increase remained slower than the historical average. At the same time, temp pay growth improved to a four-month high.
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 number of people placed into permanent roles across the Midlands declined in September, marking the fourth decrease in as many months.
Recruiters often linked the reduction to weaker confidence around the economic outlook, higher employment costs and falling vacancies. That said, the Midlands saw the softest decrease in permanent placements of all four monitored English regions in September.
September data indicated that billings received from the employment of temporary staff increased for the second successive month.
The respective seasonally adjusted index hit its highest reading since November 2024 and was consistent with a solid rate of growth overall.
Though sharp, the pace of reduction was the softest since June. Of the four monitored English regions, the Midlands saw the second-slowest fall in permanent vacancies, behind the North of England.
In contrast, temp vacancies rose for the second month running. The increase was marginal, but nevertheless the most pronounced in three months.
There were reports that redundancies and a drop in vacancies had contributed to the uplift in staff supply. The rise in the Midlands was slightly softer than that seen across the UK as a whole.
Recruiters across the Midlands continued to record an increase in starting salaries for permanent workers in September. Permanent pay has now risen for just over four-and-a-half years. Some panellists mentioned that higher salaries were offered to attract suitably skilled staff. The rate of inflation eased from August, however, and, though solid, was slower than the long-run survey average.
Commenting on the latest survey results, Kate Holt (pictured), people consulting partner at KPMG in the Midlands said: “Despite permanent hiring remaining underwhelming, the Midlands is holding up better than elsewhere, with the softest decline in placements across the UK.
“This reflects the resilience of businesses in the region, who continue to make cautious but considered workforce decisions.
“Meanwhile, the Midlands saw the strongest rise in temp billings in ten months and was the only region to record growth in temp vacancies – a sign that employers are using flexible staffing to keep projects moving and adapt to change.
“Candidate availability is also on the rise, creating new opportunities for employers to access talent that might not have been available previously.
“While pay pressures are easing slightly, many businesses are still prepared to offer competitive salaries to secure skills essential to growth and team development.”
