The latest KPMG and REC, UK Report on Jobs: Midlands survey signalled a renewed contraction in temporary billings at the end of the third quarter, and a much softer rise in permanent placements. Signs of weakness reflected slower growth in demand for staff and ongoing difficulties sourcing candidates. Supply limitations meant that pay inflation remained elevated.

The KPMG and REC, UK Report on Jobs: Midlands is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

Near-stagnation of permanent placements

Recruitment companies in the Midlands signalled a sharp slowdown in the pace of growth in permanent staff appointments during September. Placements were up only slightly over the course of the month, and to the least extent in the current 19-month sequence of expansion. Where an increase was recorded, panellists linked this to rising demand for staff. On the other hand, there were a number of reports that candidate shortages had limited the pace of growth. The increase in permanent placements in the Midlands was slower than the UK average. Meanwhile, the South of England was the only English region to record a drop in permanent placements.

Temp billings decline

September data pointed to a renewed contraction in temporary billings in the Midlands, thereby ending a 26-month sequence of expansion. The Midlands was the only one of the four English regions to post a reduction in temporary billings at the end of the third quarter. Anecdotal evidence suggested that the drop reflected a combination of candidate shortages and hesitancy among companies when making hiring decisions. Growth of temporary billings was recorded elsewhere, with the sharpest rise in the North.

There was a noticeable slowdown in growth of demand for staff in the Midlands during September, with vacancies for both permanent and temporary roles rising at softer rates.

Vacancies for permanent staff continued to increase sharply, but the rate of expansion eased to the weakest since February 2021 when the current sequence of growth began. Meanwhile, demand for temps rose at the slowest pace in 20 months.

Sharp fall in permanent candidate availability

Permanent candidate numbers continued to decrease at a rapid pace during September, although the rate of deterioration softened to the weakest since April 2021. According to respondents, concerns around economic conditions and the cost of living led to a reluctance among candidates to move roles. The fall in permanent staff availability in the Midlands was the softest of the English regions covered by the survey. The North posted the fastest fall.

Softer reduction in temporary candidate numbers

Although recruitment companies in the Midlands continued to report deteriorating candidate numbers for temporary roles in September, the pace of reduction eased markedly from the previous month and was the weakest for a year-and-a-half. Some respondents indicated that candidates were more keen on permanent roles at present, while others reported that Brexit had limited the supply of temps. As was the case with permanent availability, the fall in temporary candidates was most pronounced in the North. Meanwhile, the South of England saw a near-stabilisation of candidate supply.

Permanent salary inflation remains elevated

Recruitment companies in the Midlands reported a further steep rise in starting salaries awarded to permanent staff in September, with the rate of inflation little changed from that seen in the previous survey period. The increase in the Midlands was faster than the UK average. Candidate shortages was the principal factor leading to higher salaries. London posted the fastest rise in permanent salaries, just ahead of the Midlands.

Softer rise in temp wages

September data pointed to a further marked rise in wages paid to temporary staff in the Midlands, with the rate of inflation remaining above the series average. That said, the latest increase was softer than that seen in August. As was the case with permanent salaries, the key factor leading to higher temp pay was candidate shortages. The South of England recorded the fastest pace of inflation of the four English regions monitored, with the slowest increase in London.

Commenting on the latest survey results, Kate Holt, people consulting partner at KPMG UK, said: “It comes as no surprise that the overall downward trend in the jobs market, in terms of vacancies available and candidate supply, continues. Workers are choosing to stay put in current roles, rather than apply for new roles, due to the overall sense of economic uncertainty that many feel, which is reflected in the downturn in temporary billings. “Employers, even those who anticipate that the recession may be short, are taking steps now to cut back on spending, including hiring freezes. Those employers who continue to invest in their workforce, particularly upskilling, may find they weather the recession better and will be in a stronger position to benefit from the upturn as and when it comes.” Neil Carberry, Chief Executive of the REC, said: “The challenges we see in today’s data reflects the underlying shortage of labour the UK faces. With unemployment at record lows, pay continues to rise for both temporary and permanent workers starting new jobs, and activity levels across the recruitment and staffing industry remain high. While any economic slowdown this winter will affect the market, the extent of shortages mean that hiring will remain a focus for employers. “The REC has shown that failing to address these issues could cost our economy massively in the years to come. While there is much that Government can do, like reforming the failed Apprenticeship Levy, a lot of the answers lie with hiring businesses. Firms need to work with skilled recruiters on offers that will maximise the skill base we have. There has never been a more important time for business leaders to put the people stuff first.”

Business coaching franchise ActionCOACH Loughborough is celebrating reaching 50 members in its portfolio. With franchises in more than 140 countries, ActionCOACH Loughborough provides bespoke, support, guidance and training, to enable business owners to find clarity on personal and business development. Led by Matt Bull – UK Coach of the Year 2021 – ActionCOACH Loughborough saw a significant surge in demand for its services during the pandemic and the level of interest from business owners has continued. Managing director Matt, said: “Since joining the Loughborough team five years ago and taking ownership of the business earlier this year, I have watched the business go from strength-to-strength and with new members also comes the need for new team members. “Throughout this time, we have evolved our services to meet the needs of business owners as we continue to live in changeable times, and as our focus has always been a community-first approach, we have added group coaching, group planning days and networking events to our core 121 coaching. People thrive and always benefit from spending time with likeminded people, to share challenges but also celebrate successes. “Myself and the team are really pleased to have reached the 50 member milestone which is something we have been working towards – and I want to say a big thank you to those members who chose to come on their own journey of business and personal growth and trust us to support them on the journey.” The firm continues to put its ambitious growth plans into action and the team are now working on delivering its five-year plan to help 500 clients across all membership options by 2026. Matt continued: “We love what we do and seeing the transformation and impact we have on businesses and the business owners themselves is just incredible. “It is tough being a business owner in this current economic climate, but that just makes us more determined to help and confident that there is a real need for what do – providing the tools needed to achieve personal and business goals.”

Logistics sector leaders have welcomed the launch of a new training centre that will support the vital supply chain that underpins the UK economy, offering a robust ‘career ladder’ for its workforce. Speaking at the launch of the Centre for Logistics Education and Research (CLEAR) at GLP’s Magna Park development in Lutterworth, Clare Bottle, CEO of the UK Warehousing Association (UKWA) said that the sector brings significant opportunities for employees to progress and benefit from engaging careers. Also speaking at the event, James Wroath, CEO of Wincanton, the leading supply chain partner for UK business, welcomed the launch of CLEAR saying that ‘sustainable supply chain value’ was dependent on ‘great people’. He added, “Attracting, recruiting, and retaining the best people within our business is of paramount importance in this dynamic market where individuals can easily switch to a new employer. To achieve our ambition of delivering value to our customers efficiently and safely, we need to continually focus on developing and nurturing our employees by ensuring that we look after their wellbeing and invest in high-quality, consistent training.” CLEAR is the brainchild of North Warwickshire and South Leicestershire College (NWSLC) which is working in collaboration with supply chain partner Wincanton and leading investor and developer of logistics warehouses and distribution parks, GLP to provide skills training and professional development at all levels across the spectrum of logistics and supply chain roles. Its launch was marked by an event held at Bittesby House on 30 September 2022 where speakers also included Ian Howe, Director of Logistics for Screwfix. Guests included Alberto Costa, MP for South Leicestershire, Cllr Phillip King, the leader of Harborough District Council and Cllr David Findlay from Blaby District Council. Currently based at Bittesby House within the Magna Park Northern extension of the Lutterworth development, CLEAR will eventually move to a bespoke, state of the art facility. Further and higher education will work together to offer seamless progression through the levels of qualification and learning and the research capacity of a large regional university will enable continual development of a relevant training offer. Paying tribute to supporters of the centre, Marion Plant, OBE FCGI, Principal and Chief Executive of NWSLC said, “Today we learned from Clare Bottle at UKWA that there are around 165 different types of jobs available in warehousing, a fascinating statistic that helps to highlight the real potential of careers in the sector. “Our ambitions for CLEAR are based on offering a holistic one-stop-shop training service both from its base at Magna Park and also remotely online, enabling a flexible skills pathway tailored to meet the needs of specific businesses and providing individuals with well-defined opportunities to progress their careers. “Businesses can train one or many members of their team with flexible start dates and bespoke provision and students will be able to move seamlessly between training partners as their development needs progress and skills gaps are identified, improving retention, and driving down costs. “CLEAR can get training programmes up and running very quickly as it already has systems in place to fulfil training design briefs at all levels. Commissioning training through CLEAR will bring shorter lead times between the identification of training needs and students starting their courses or programmes.” “I would like to thank Harborough District Council and the Leicester and Leicestershire LEP for their unstinting commitment to the development of this initiative. We have benefited enormously from the advice and support of our industry partner Wincanton. I am also extremely grateful to Gwyn Stubbings, Senior Planning Director from GLP whose investment made this development possible.” Magna Park Lutterworth, the UK and Europe’s premier logistics hub, developed by GLP over the past 35 years is currently home to over 35 blue chip businesses within 46 buildings. The Park extends to over 13 million square feet of floor space and will expand to 16 million square feet over 1,350 acres via the Northern and Southern expansion project.  It is centrally located within the so-called “logistics golden triangle’ between the M1, M6 and M69 motorways. CLEAR will provide the platform for a future national centre of excellence with a campus that will accommodate, when fully operational, up to 1,000 students as well as providing applied research and associated facilities.