2024 ended with ‘pronounced drop’ in recruitment activity in South West

Recruitment difficulties in the South of England persisted through to December, according to a new survey out today.

The latest KPMG and REC, UK Report on Jobs: South of England survey, compiled by S&P Global, indicated that the downward trend in hiring activity was further exacerbated by the Autumn Budget, with some clients reportedly hesitant to recruit due to the impact of proposed changes to employers’ labour costs.

Coupled with an economic slowdown, this has resulted in a notable reduction in hiring of both permanent new hires and temporary workers. Furthermore, the rates of contraction accelerated over the month, signalling significant declines, with the permanent placements seeing the steepest drop in four-and-a-half years. Among the four English regions monitored, the South of England emerged as the poorest performer.

The data also showed stronger reductions in vacancies for both permanent and temporary positions. Additionally, with redundancies reportedly contributing to a rapid increase in staff supply, the latest data imply an oversaturated labour market in the South of England. This was a key factor behind the decline in starting salaries for new permanent hires and hourly temp wages. In fact, permanent starting salaries were reduced at the fastest rate since February 2021. Notably, the South of England was the only region among the four monitored to experience a decrease in pay.

David Williams, Bristol office senior partner at KPMG UK, said:  “It’s not an easy time for jobseekers in the South of England, with December marking the steepest decline in new, permanent positions in four-and-a-half years. That said, despite the ongoing impact of increased tax considerations for employers, we know from our KPMG Private Enterprise Barometer that businesses across the UK have ambitious plans for the year ahead and are confident of growth.

“Salaries in the South also saw the most substantial drop since early 2021 – the only part of the UK to see a fall – so employers in the South West will be able to strengthen their teams at a competitive rate.”