Further fall in permanent staff appointments across Midlands during November – report

Permanent staff appointments in the Midlands fell for the sixth time in as many months, according to the latest KPMG and REC UK Report on Jobs survey.

The rate of decrease was marked overall, albeit slightly softer than that seen in October.

However, temp billings rose at a solid rate during November, the survey said.

Sustained falls in permanent staff appointments contributed to a further steep rise in candidate availability in November, notably with permanent candidate numbers increasing to the greatest extent since June.

There was a softer increase in the rate of permanent salary inflation, meanwhile, which was at the lowest in the current sequence which began in March 2021. 

The reduction in the Midlands was the softest of the four monitored English regions. 

Respondents indicated weak client confidence, lower demand for staff and uncertainty. 

Recruiters in the Midlands recorded a rise in temporary billings in the penultimate month of 2024.

The increase was solid and the strongest in five months. Anecdotal evidence suggested that firms opted for temporary staff to fill roles in the absence of suitable permanent candidates. 

Growth in the Midlands contrasted with a fall at the UK level, with the remaining three monitored regions seeing temp billings decrease.  

Demand for permanent staff in the Midlands fell for the sixth month running in November.

The rate of decrease was strong, and the most pronounced since June 2020. Moreover, the Midlands saw the second-steepest fall in vacancies of the four monitored regions, ahead of the South of England.  

The rate of decline in demand for temporary workers was little-changed from October and moderate overall.

Moreover, the reduction in the Midlands was the softest of the monitored regions. 

Kate Holt (pictured), people consulting partner at KPMG in the Midlands, said: “While November’s drop-off in permanent placements may be less pronounced than in other parts of the country, declining levels of recruitment in the Midlands remains a long-term issue.

“Indeed, many of those that paused their plans ahead of the Budget appear not to have accelerated them again in light of the increase to National Insurance and the cost of hiring next year.  

 “Finding people with the right skills also remains a challenge but one that needs to be addressed if businesses are to pursue their growth plans.

“As businesses continue to grapple with both sets of challenges, we may well see the Midlands market continue to invest in temporary appointments to plug gaps within teams.”