Hiring activity surges in September
There has been a surge in hiring activity across the Midlands, as companies ramped up capacity and began to fill roles amid looser lockdown restrictions.
According to the KPMG and REC, UK Report on Jobs: Midlands report, permanent placements rose at the quickest rate since July 2018, while temp billings swelled markedly again.
Demand for permanent staff increased, following a mild fall in August, and temporary vacancies expanded at the sharpest pace in over two years.
The availability of both permanent and temporary candidates also continued to increase rapidly, although both survey measures saw rates of increase soften.
The report is compiled by IHS Markit from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.
Permanent placements rise at quickest pace since July 2018
September data highlighted a back-to-back increase in permanent staff appointments across the Midlands. Moreover, the latest rise was the quickest for over two years and marked, with panellists mentioning a greater demand for candidates as companies reopened and were subsequently more confident of an economic recovery.
Further rapid rise in permanent staff availability
A sixth consecutive expansion in the supply of permanent candidates across the Midlands was recorded in September, amid reports of a greater number of job seekers due to widespread redundancies and temporary company closures at the height of the pandemic. The latest rise was the slowest since May, but still rapid nonetheless.
Moreover, the Midlands recorded the most marked increase in permanent staff availability across the four monitored English regions.
Permanent salaries fall at quickest rate since May
Recruiters across the Midlands signalled a further reduction in salaries awarded to permanent new joiners in September, with the rate of reduction the quickest since May and sharp. According to panellists, a greater supply of permanent candidates had put downwards pressure on pay rates.
Kate Holt, people consulting partner at KPMG, said: “It’s encouraging to see what looks like recovery in hiring activity across the Midlands, with both vacancies and appointments rising. However, it’s still a very uncertain and challenging time, with Brexit and the end of furlough on the horizon, so businesses and recruiters should remain cautiously optimistic.
“That being said, this gives a glimpse of the region’s resilience and focus on recovery, as jobseekers focus on searching and upskilling, and as businesses prepare as much as possible for what’s likely to be a difficult few months ahead.”
Neil Carberry, chief executive at the REC, said: “Growing permanent placements and temp billings in September confirm the positive trend recruiters around the country have been reporting to the REC. Given the scale of falls in demand during the lockdown, we would expect a return to positive territory at this stage as demand for staff recovers. But it is great to see it happen. Across the country, the story varies between sectors, but today’s survey emphasises the fact that the labour market is always creating roles – our challenge is to help people to find them. That’s where the UK’s world-leading recruitment sector comes in.
“Recruiters are experts on where opportunities lie, and at supporting people to get those new jobs. We have a huge part to play in getting the economy moving again and Government schemes need to leverage the skills we have to offer.”
