Number of new jobs in North West slumps to lowest level in 11 years
The number of new jobs created in the North West fell to its lowest level in 11 years in March – according to a new report.
The latest KPMG and REC, UK Report on Jobs: North of England survey underlined a severe reduction in recruitment activity during March.
Both permanent placements and temporary billings fell at the quickest pace for 11 years, with the COVID-19 pandemic hitting demand for workers.
This was highlighted by falls in the number of both permanent and temporary staff vacancies.
Meanwhile, redundancies related to the coronavirus led to a marked increase in candidate availability.
The report, which is compiled by IHS Markit, is based on responses to questionnaires sent to around 100 recruitment and employment consultancies in the North of England.
Recruiters in the North of England reported a decline in permanent staff appointments for the first time in seven months during March.
Across the UK as a whole, permanent staff placements declined at the quickest pace since February 2009 and one that was among the most marked since data collection began in October 1997.
Moreover, the pace of decline was the quickest since March 2009. When explaining the decrease, many recruiters cited lower activity at their clients amid the COVID-19 pandemic.
Growth of demand for both permanent and temporary staff in the North of England eased in March. Permanent vacancies in the region rose at the slowest pace since August 2012 during March.
Latest survey data revealed a sharp expansion in temporary candidate numbers in the North of England during March.
The rise was the fastest for over seven-and-a-half years, driven by a combination of the pending IR35 legislation and the COVID-19 crisis.
Starting salaries awarded to permanent workers in the North of England continued to rise in March, extending the current sequence that began just over eight years ago.
Warren Middleton, office senior partner for KPMG in Manchester, said: “Unsurprisingly, COVID-19 has already impacted the northern jobs market with recruitment activity falling away as uncertainty grips the nation.
“Firms are cancelling or postponing hiring decisions although, as you would expect, the demand for temporary healthcare professionals and manual labour workers saw a significant uptick. We are also seeing firms expanding their offer in response to increased demand, particularly in e-commerce and grocery retail.”
“UK business needs to do what it can to adapt and survive this pandemic – and be able to emerge in the best position possible to ramp up once the crisis comes to an end.”
