Permanent placements fall at fastest pace for 16 months – report

Permanent job placements in the Midlands fell at the sharpest rate in 16 months during the final month of 2024, according to a new report.

The latest KPMG and REC UK Report on Jobs survey, compiled by S&P Global signaled the sharpest fall in permanent placements since August 2023.

The report said temp billings continued to increase, albeit at a softer rate than that seen in November.

And demand for permanent staff continued to fall in December, with the rate of decrease the most pronounced in four-and-a-half years.

Recruiters also suggested that redundancies had contributed to additional candidates being available to work, as indicated by sustained increases in both permanent and temporary staff supply.

On the pay front, permanent salary inflation remained modest, and well below the series average.

Temp pay rose for the second time in three months.

At the UK level, the Midlands experienced the second-softest drop in permanent placements, behind London.

Temp billings across the Midlands grew for the ninth consecutive month at the end of 2024.

The rise in temporary staff placements contrasted with the UK average which signalled a solid decrease.

Panellists noted that the expansion was sometimes due to new client wins.

That said, the rate of increase in the Midlands was the softest seen for three months, and modest overall.

Permanent vacancies in the Midlands decreased for the seventh successive month during December.

Of the four monitored English regions, the Midlands saw the second-sharpest reduction in demand for permanent staff, with the overall decline the most marked since June 2020.

With regards to temporary vacancies, the Midlands posted a fourth consecutive decrease in December.

But the reduction in the Midlands was the softest of the four monitored regions.

Kate Holt (pictured), people consulting partner at KPMG in the Midlands, said: “While the Midlands saw the second-softest fall in permanent placements in the UK during December, the region's businesses are still holding back on recruitment against an uncertain backdrop.

“A drop in permanent vacancies - the most marked since June 2020 - shows firms are worried about the economic outlook, despite signs of more stable conditions in 2025. 

“If uncertainty prevails, Midlands firms must consider longer-term solutions to secure the skills they need to grow – whether this means investing more heavily in learning and development for existing staff or adapting their hiring strategies to attract the right candidates.”