Softer uptick in permanent job placements - KPMG

The Midlands experienced a further increase in the number of permanent staff appointments during May, according to a new report.

However, the latest KPMG and REC, UK Report on Jobs: Midlands says the rate of expansion was the slowest in the current 15-month sequence of growth.

Temp billings also continued to rise, albeit at the softest rate since last November.

Stronger demand for permanent staff amid a sustained lack of availability of suitably skilled workers coincided with the sharpest uptick in permanent starting salaries for six months.

The report is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

The number of permanent placements across the Midlands rose for the 15th consecutive month in May.

The rate of increase softened from the previous survey period and was the slowest in the current sequence.

The rise in temp billings in the Midlands was the second-sharpest of the monitored regions, behind the North of England.

Kate Holt (pictured), people consulting partner at KPMG UK, said: “The confidence of businesses to hire in the Midlands remained robust in May, as the region saw a further uptick in the number of permanent job placements - its fifteenth consecutive monthly rise.

“But while the strong demand for candidates continues to outpace supply, there are signs that appetite could be easing, as the rise softened to its slowest rate in that sequence.

“Businesses need to ensure they keep a close handle on cost pressures, whilst still trying to attract new talent.

“This is no mean feat, especially considering they 're also facing the sharpest rise in starting salaries for six months, and firms will need to show the resilience of the last two years while they wait for the turbulence to ease. ”