Renewed fall in permanent job placements

There was a renewed decline in permanent placements in the region in January, following an uptick in the previous survey period.

However, according to the latest KPMG and REC, UK Report on Jobs: Midlands, temp billings continued to rise, although the rate of increase was the softest in the current five-month sequence of expansion.

January data also highlighted a marked increase in salaries awarded to permanent new joiners, whilst average hourly wages for temporary staff rose at one of the softest rates in the current 84-month sequence of inflation.

The report is compiled by IHS Markit from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

Placements of permanent candidates into staff roles in the Midlands fell during January, following an uptick in the previous survey period. The rate of decline was only mild, however.

In contrast to the trend recorded in the Midlands, permanent placement growth accelerated across the UK as a whole during January. Of the four monitored English regions, London and the Midlands were the only areas to record a decline in permanent staff appointments, with the fall slightly sharper in London.

Recruiters across the Midlands recorded a further increase in temporary billings during January. The uptick was the softest in the current five-month sequence of growth, however.

Of the four monitored English regions, only the Midlands and the North reported a rise in temp billings in January, with the sharper increase seen in the Midlands.

Permanent vacancies increased solidly across the Midlands in January, with the rate of growth accelerating to a five-month high. Moreover, the expansion was the second-strongest of the four monitored English regions, behind only the North.

Demand for temporary staff across the Midlands also rose during January, with the rate of increase the joint-fastest since February last year and solid overall. The uptick in the Midlands outpaced the UK average for the first time since July 2018.

The availability of permanent candidates in the Midlands continued to fall during January, extending the current sequence of decline to over six-and-a-half years.

The latest fall was the joint-quickest since September last year and sharp overall.

All of the four monitored English regions reported a fall in permanent candidate availability in January. Only the North recorded a softer rate of decline than the Midlands.

January data signalled a further reduction in temp labour supply across the Midlands, extending the current sequence of contraction to six-and-a-half years. Albeit still sharp overall, the latest fall was the softest for three months.

Of the four monitored English regions, the Midlands recorded the sharpest reduction in temporary candidate availability in January, followed by the South. London was the only region to report an increase.

Recruiters across the Midlands continued to record an increase in salaries awarded to permanent new joiners during January. Panellists associated the latest rise, which was sharp, with placements for more senior roles and efforts to entice skilled labour.

Despite softening from December, the rate of salary inflation in the Midlands was the quickest of the four monitored English regions.

Average hourly pay rates for temporary staff rose during January, as has been the case in each month since February 2013. The rate of wage inflation, albeit solid overall, was among the slowest in the current 84-month sequence of increase. Moreover, the increase was softer than that seen at the UK level for the second month running.