Temp billings rise at steepest rate since November 2024 - report

The latest KPMG and REC, UK Report on Jobs indicated a solid and accelerated rise in temp billings across the Midlands at the start of the final quarter of 2025.

Furthermore, the rate of growth was the best recorded for nearly a year.

This contrasted with a further decline in permanent staff appointments, which fell at the steepest pace in three months.

Recruiters in the Midlands also signalled sustained upturns in candidate availability which, combined with relatively muted demand for staff, dampened pay pressures.

In fact, the latest increase in starting salaries was the slowest recorded since July and well below the series average.

October data pointed to a sustained reduction in permanent placements in the Midlands that was the fifth in as many months.

The rate of decline was the most pronounced since July and sharp.

According to respondents, a range of factors dampened permanent staff hiring, including weaker demand for workers, recruitment freezes, higher employment costs and uncertainty surrounding future government policy.

The Midlands recorded the second-sharpest reduction in permanent placements across the four monitored English areas, behind the North of England.

For the third consecutive month, temp billings in the Midlands rose at the start of the fourth quarter. Where an increase was reported, recruiters mentioned greater demand for temporary staff.

The rate of expansion was solid overall, having accelerated to the strongest since November 2024.

Demand for permanent workers declined again in October, albeit to a lesser extent than in September. Though solid, the rate of reduction was the softest in four months and the weakest of the four monitored English regions.

The number of permanent candidates rose for the thirty-first month running in October.

Redundancies reportedly led permanent staff availability to increase in the latest survey period. Though rapid overall, the rate of growth was the softest seen since May.

The rate of increase in temporary candidate numbers strengthened in October and was robust overall.

As was the case for permanent labour supply, the upturn was mainly linked by recruiters to redundancies, though some firms mentioned higher staff turnover.

As has been the case since March 2021, starting salaries for permanent workers in the Midlands rose at the start of the fourth quarter.

Hourly pay rates for temporary staff increased for the eleventh consecutive month during October. However, the rate of wage inflation eased from September and was only modest overall.

Higher rates of temp pay in the Midlands and London contrasted with declines in the North and South of England.

Kate Holt (pictured), People Consulting partner at KPMG in the Midlands said: “Divergence across permanent and temporary recruitment trends defined the Midlands in October.

“Permanent placements fell at their sharpest rate in three months, while temp billings rose solidly and at the fastest pace in nearly a year.

“This split demonstrates how employers are favouring flexibility over commitment in a changeable economic landscape.

“We’re likely to see employers hedging against economic uncertainty and rising employment costs in this way ahead of the Autumn Budget.

"Notably, the Midlands was the only region to see temporary vacancies rise, suggesting resilience in short-term hiring appetite.

“Pay pressures are also easing, with permanent salary growth slowing to its softest pace since July, despite the region still recording the highest rate across England."