Strongest rise in Midlands permanent placements since late 2022 – report

The Midlands recorded its strongest rise in permanent job placements since late 2022 in August, according to the latest KPMG and REC UK Report on Jobs, though the recovery remains early and uneven.

The survey, compiled by S&P Global, found recruiters across the region recorded a second consecutive monthly increase in permanent placements, while temp billings fell for the second month running - the steepest decline in 13 months.

This contrasts with the trend seen over much of the past four years, which has generally shown reduced permanent hiring alongside rising temp billings.

Permanent staff appointments also rose across the UK as a whole in August - only marginal, but the first uptick in 47 months.

Despite the improvement in permanent placements, permanent vacancies across the Midlands fell for a 27th consecutive month, the steepest decline of the four English regions monitored, although the softest fall recorded so far this year.

Temp vacancies also declined after a marginal rise in July.

Candidate supply continued to be lifted by redundancies, with permanent staff supply rising sharply in August, though the pace of growth was the weakest among the four regions. Temp staff availability rose for a sixth consecutive month, but growth continued to ease.

Pay pressures remained subdued by historical standards. Starting salaries for permanent joiners rose only slightly, the softest increase among the four regions, while wages for temporary workers rose rapidly, reaching a 15-month high and the fastest increase of the four regions, linked to the higher cost of living.

Kate Holt (pictured), People Consulting partner at KPMG in the Midlands, said: “August's figures give us one of the clearest signs yet that confidence in the Midlands jobs market is starting to improve.

“The main point of optimism is the strongest rise in permanent placements since late 2022 - an encouraging sign that businesses are becoming more confident about making longer-term hiring decisions after an extended period of caution.

“That said, this is still an early and uneven recovery. Jobseekers still face challenges: permanent vacancies continue to fall sharply, temp billings have weakened and candidate supply continues to rise.

“The key question now is whether this improvement in permanent hiring can translate into a broader and more sustained recovery in demand.”