Permanent staff appointments fall sharply in July – report
The latest KPMG and REC UK Report on Jobs survey, compiled by S&P Global, pointed to a second successive monthly decrease in permanent placements in the Midlands during July.
Sustained falls in permanent staff appointments contributed to a further steep rise in candidate availability at the start of the third quarter of the year, though the rate of increase was the softest since September 2023.
There was also a softer increase in the rate of permanent salary inflation, which was at a five-month low, and well below the average seen over the course of the current 41-month sequence of higher salaries.
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.
Permanent placements fell in the Midlands for the second successive month in July. The rate of decrease accelerated from June and was sharp overall. The reduction in the Midlands was the second-fastest of the four monitored English regions, slower only than that seen in the South of England.
Respondents indicated lower demand for staff, skills shortages and some reports of disruption caused by the General Election.
Recruiters in the Midlands recorded a rise in temporary billings at the start of the third quarter of 2024. The increase was only modest and the softest recorded for three months.
Growth in the Midlands contrasted with a slight fall at the UK level, while only the North of England saw a stronger rise than that seen in the Midlands.
Demand for permanent staff in the Midlands fell for the second successive month in July. The rate of decrease in permanent vacancies was modest, yet the strongest recorded since January 2021. Moreover, the Midlands saw the second-steepest fall in vacancies of the four monitored regions, ahead of the South of England.
The rate of growth in demand for temporary workers slowed slightly from June. The increase in the Midlands was the softest since January but stronger than that seen at the national level.
The number of candidates available for permanent roles increased sharply during July, with the latest rise extending the current sequence to 16 months. The improvement in the Midlands was the slowest since September 2023, and the softest of the four English regions.
Respondents indicated that redundancies had been one of the main factors behind the rise in candidate numbers.
Recruitment companies in the Midlands reported that slower growth of temporary vacancies had led to a further rise in temp candidate availability. That said, the rate of increase was the softest since March.
The Midlands posted the slowest rise in temporary staff availability of the monitored regions.
Salaries for new permanent joiners continued to rise during July.
The rise in permanent salaries in the Midlands was slower than the UK average.
Recruitment companies in the Midlands signalled a further increase in temporary pay rates at the start of the third quarter of 2024.
Commenting on the latest survey results, Kate Holt (pictured), people consulting partner at KPMG in the Midlands said: “The Midlands experienced a downturn in July likely due to a combination of factors, including lower demand for staff, skills shortages, and disruption caused by the General Election.
“While temporary billings and demand for temporary workers remained positive, the rate of growth slowed compared to previous months. Additionally, salary inflation softened for both permanent and temporary roles.
“The region’s jobs market appears to be cooling down after a period of growth but there are green shoots of economic recovery, with forecasts showing improved growth and potential interest rate cuts. It’s still early days for the new Government and businesses may continue to be cautious about hiring decisions for a while yet.”
