Midlands job vacancies fall more quickly in October – report
Temporary billings continued to rise, however, in contrast to a further reduction in permanent placements. On the pay front, permanent salary inflation softened while there was a renewed increase in wages for temporary staff.
The KPMG and REC, UK Report on Jobs: Midlands is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.
Moreover, the rate of contraction was the fastest since January. According to respondents, market uncertainty meant that companies were often reluctant to hire at present.
The reduction in permanent placements in the Midlands was sharper than the UK average. The steepest reduction overall was in the South of England, with the slowest decline in London.
In marked contrast to the picture for permanent placements, temp billings continued to rise in the Midlands during October. Moreover, the rate of expansion was solid and faster than in September. Temp billings have now increased in each of the past seven months.
The North of England was the only other region to see temp billings rise, with the Midlands posting the sharpest expansion overall.
Demand for both permanent and temporary workers declined during October, and to larger extents than was the case in September.
Permanent vacancies fell particularly sharply, with the rate of contraction the most marked since January 2021. Only the South of England posted a steeper fall than the Midlands.
Demand for temps was down for the second month running, and at the fastest pace since the opening wave of the COVID-19 pandemic in mid-2020.
Redundancies meant that permanent staff availability increased sharply again in October. The number of candidates rose for the nineteenth month running, albeit at a slightly softer pace than in September.
Higher candidate numbers were seen across each of the monitored regions, led by London. The slowest increase in permanent staff availability was recorded in the Midlands.
The rate of increase in temporary candidate numbers quickened markedly during October and was the strongest since November last year. The rise in the Midlands was the second-largest of the monitored English regions, just behind the capital.
As has been the case on a monthly basis since March 2021, starting salaries for permanent workers in the Midlands rose in October.
After having dropped for the first time in almost four years in September, hourly pay rates for temporary staff increased in October.
As was the case with permanent starting salaries, the increase in temporary pay rates in the Midlands was the sharpest of the English regions covered.
Kate Holt (pictured), people consulting partner at KPMG in the Midlands said: “October’s figures recognise the challenges facing the Midlands’ labour market, as demand for both permanent and temporary staff continues to fall.
“That said, it’s likely that many firms in the region will have eased off on recruitment until the outcomes of the Autumn Budget were known.
“The increase in National Insurance announced by the Chancellor provides a further cost consideration for management teams but we would hope to see more firms in the Midlands looking to enact their recruitment plans for 2025 with the table now set.”
