Steep drop in permanent placements across Midlands - KPMG
The Midlands have experienced a rapid decrease in the number of permanent staff appointments throughout January, according to the findings of the KPMG 's annual report and the REC UK Report on Jobs.
The REC Report provides a comprehensive guide to the UK labour market, drawing on original data from recruitment companies and employers to give a monthly indication of labour market trends.
According to the report, the Midlands saw a sharp decrease in the demand for permanent staff, the quickest rate of decline for seven months.
KPMG has said this may be a result of postponed hiring decisions across many firms, largely influenced by stricter Covid-19 measures and the level of substantial uncertainty.
At the beginning of 2021, demand and supply continued to miss match, with the supply of permanent staff rising again due to ongoing redundancies. The number of temp billings also increased, despite a renewed fall in demand for temp candidates which coincided with a further upturn in vacancies.
Following a broad stabilisation in December, The REC report noted further changes this year with regard to salary reduction. Salaries awarded to newly- appointed, permanent staff were seen to decrease during January, as well as those awarded to short-term staff.
According to respondents, companies were offering lower pay packages in an effort to reduce costs.
Across the four monitored English regions, London was the only area to see a faster decrease in permanent salaries than the Midlands during the last month. This contrasted with the trend across the UK as a whole, where temp wages fell slightly.
Despite the unprecedented changes caused by the events of last year, KPMG UK remains optimistic about the future of their workplace and their aims for the future.
Throughout Covid-19, they have continued to invest in new talent and have recruited over 900 graduates and apprentices. In addition, they have also promoted more than 1,800 colleagues across the business.
Moving forward, KPMG UK are now preparing for a future of hybrid working and are looking to invest £44million into the transformation of their offices as well as new home working technology for their staff.
Commenting on the latest survey results, Kate Holt (pictured), people consulting partner at KPMG, said: “It 's clear that business confidence has taken a hit with the latest national lockdown. As we 've seen in some previous months, this has had a knock-on effect on permanent appointments as businesses press pause on long-term recruitment decisions.
“Demand for temporary staff, however, has risen, showing that many across the Midlands are still hiring, and the majority of these roles will be in the blue collar and medical industries. Starting salaries for permanent hires also saw a slight dip as companies seek to manage costs carefully amidst the uncertainty.
“Looking ahead, there is cause for optimism as the vaccine rollout continues, and with the Budget next month, many will be looking to the Government for measures to help the jobs market and revive the UK 's economy. ”