Permanent staff appointments falls sharpy in March – report

The latest KPMG and REC UK Report on Jobs: Midlands survey, compiled by S&P Global, indicated that permanent placements in the Midlands decreased for the tenth straight month in March.

The rate of contraction quickened from February and was sharp overall.

Meanwhile, temp billings fell at a rate that, though modest, was the most pronounced in a year.

The sustained fall in hiring activity contributed to further steep increases in candidate availability for both permanent and temporary roles in March.

Turning to vacancies, demand for both permanent and short-term staff fell at notably softer rates than those seen in February.

At the same time, recruiters signaled slightly stronger increases in starting salaries and temp pay. 

Permanent placements fell in the Midlands for the tenth consecutive month in March. The rate of decrease quickened from February and was sharp overall.

Respondents indicated that weaker confidence around the economic outlook and lower job postings had weighed on permanent staff appointments.

The reduction in the Midlands was softer than those seen in the North and South of England, but contrasted with a modest upturn in London.

Recruiters in the Midlands recorded a decrease in temporary billings at the end of the first quarter. The rate of reduction was modest but the strongest in exactly one year.

Anecdotal evidence suggested that tighter hiring budgets had contributed to lower billings, while some employers opted for permanent staff rather than temporary workers.

That said, the fall in the Midlands was the softest seen across the four monitored English regions.

Demand for permanent staff in the Midlands fell for the tenth month running in March.

The rate of decrease was solid, but the least pronounced since September 2024.

The Midlands saw the second-softest fall in permanent vacancies of the four monitored English regions, behind London.

The rate of decline in demand for temporary workers eased from February and was modest overall.

Moreover, the pace of reduction in the Midlands was weaker than those seen across the three other monitored English regions.

The number of candidates available for permanent roles in the Midlands increased markedly during March, with the latest rise extending the current sequence of expansion to two years.

That said, the rate of growth was the softest in five months and the second-slowest of the four English regions monitored by the survey (after the South of England). Panellists indicated that redundancies had been a key factor behind higher candidate numbers.

Recruitment companies in the Midlands reported that a lack of temporary job opportunities and redundancies contributed to a further rise in temp candidate availability.

Moreover, the rate of increase gathered momentum from February and was the strongest for three months.

The Midlands posted the slowest rise in temporary staff availability of the four monitored English regions, however.

Kate Holt (pictured), people consulting partner at KPMG in the Midlands said: “There’s no avoiding the fact that the UK job market remains under pressure, but the Midlands continues to show signs of relative resilience, with a slightly softer decline in hiring activity when compared to other regions.

“Employers are still treading carefully amid a mixed picture – with weaker areas characterised by a sustained fall in permanent and temporary vacancies – but the steady uptick in starting salaries and temporary pay suggests the market remains strong for skilled candidates.

“Candidate availability is continuing to climb, particularly as redundancies persist, however, the silver lining is that regional businesses are in a strong position to access a wider talent pool. Now is a timely opportunity to invest in people, prioritise training and lay the foundations for future growth.”