Softer rise in permanent placements during May - report

The latest KPMG and REC, UK Report on Jobs: Midlands highlights a further increase in the number of permanent staff appointments during May.

Though softening from April 's over seven-year high, the rate of increase remained marked, as companies continued to hire amid a further easing of lockdown restrictions.

Similarly, temp billings continued to rise, however the rate of increase weakened to the softest recorded since July 2020.

Demand and supply mismatches remained stark during May, as the strongest fall in permanent staff availability in two years coincided with a robust upturn in vacancies.

The report is compiled by IHS Markit from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

The Report on Jobs provides a comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour market trends.

The number of permanent placements across the Midlands rose for the third consecutive month in May.

The rate of increase softened from the more than seven-year high in April, though remained well above the series average.

According to anecdotal evidence, companies kept up hiring amid a further easing of lockdown restrictions and improved confidence.

Across the four monitored English regions, the Midlands saw the slowest upturn in permanent placements during May.

Temp billings in the Midlands also rose during May but the rate of increase was the slowest since July 2020 and considerably slower than the national level.

Recruiters across the Midlands signalled a sustained increase in the number of permanent vacancies during May.

The latest uptick softened from April's survey record, yet remained at a historically high level. Anecdotal evidence noted firms had maintained hiring as lockdown restrictions eased further.

At the same time, temporary vacancies rose at a quicker pace in May, with the rate of increase the steepest recorded since June 2015.

A second successive monthly decrease in permanent staff supply was recorded in May.

Moreover, the pace of the fall quickened sharply and pushed the respective seasonally adjusted Index to the lowest level for two years.

Panellists commonly attributed the downturn to uncertainty in the jobs market that had made candidates unwilling to change roles.

The Midlands recorded the second-softest decline, behind London as all four monitored regions saw staff availability fall.

The availability of temporary staff across the Midlands fell for the third month in a row during May.

The rate of decline was broadly unchanged from the previous survey period and was marked overall.

All four monitored English regions recorded falls in temp staff supply in the latest survey period, with recruiters in the Midlands reporting the second-weakest decline, only behind London.

Kate Holt (pictured), people consulting partner at KPMG, said: “It's encouraging to see that the job market across the Midlands remained strong in May, largely due to lockdown restrictions easing, which continues to boost confidence for both businesses and jobseekers.

“Whilst the rise in appointments and vacancies have maintained their upward trajectory, albeit at a softer pace, the growing gap between the number of candidates available and the number of job vacancies, if not addressed, will become a cause for concern.

“The skills gap is very real and those coming from sectors that have not started to recover from the pandemic will certainly need support to upskill and reskill to move into new roles.

“Businesses and government need to work closely to ensure that access to opportunities really is equal as the focus on recovery continues. ”