Pressures rise as job seekers' bargaining power increases- KPMG

Permanent staff placements have continued to rise at the softest pace in seven months during the second quarter, as well as an upturn in candidate demand and temporary staff vacancies, according to the latest KPMG and REC, UK Report on Jobs: Midlands survey.

A softer, yet still marked increase was seen in the number of permanent staff appointments at the start of the second quarter of 2022. Despite being the slowest regional rise for seven months, the uptick in permanent placements in the Midlands was the fastest out of other monitored regions in England.

In contrast, growth in demand for candidates picked up, with vacancies for temporary staff rising at the fastest pace in 24 years. A lack of experienced candidates and uncertainty regarding changing roles amid cost of living pressures made staff more unwilling to move between roles, according to panellists.

Hiring was linked to increased demand for permanent staff, though recruiters commented on a lack of suitable skilled candidates.

Inflationary pressures meanwhile displayed signs of easing in the Midlands, as both permanent salaries and temporary pay rates rose at marked, albeit softer rates.

These salary awards were attributed to efforts to attract staff amid high demand for experienced candidates.

Kate Holt (pictured), People Consulting partner at KPMG UK, said: “The gears of the Midlands jobs market are locking up. Employers have more and more vacancies, but the quality candidates they need are relatively few and far between. With roles being left unfilled, job seekers hold greater influence on pay. All this means that businesses in the region will continue to face upward cost pressures and a capacity cap on their growth ambitions. Long-term skill development strategies at a corporate, regional and national level will be the only sustainable fix that can get the engine running smoothly again. ”