The latest KPMG and REC, UK Report on Jobs survey, compiled by S&P Global, signalled the sharpest fall in permanent placements since the start of 2025 during April. Temp billings fell for a third consecutive month, and at the quickest pace in just over a year.
Demand for both permanent and temporary staff continued to fall at the start of the second quarter, and at quicker rates than those seen in March.
Recruiters suggested that fewer vacancies and redundancies contributed to a further uplift in candidate availability, as indicated by sustained increases in both permanent and temporary staff supply. On the pay front, permanent salary inflation remained strong, albeit well below the series average.
Temp pay meanwhile increased at the sharpest rate since last October, boosted by stronger than average increases in the national minimum and living wage rates.
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.
Sharpest fall in permanent placements for three months
April data signalled a further decline in the number of permanent placements made by recruitment agencies in the Midlands. Permanent staff appointments were reportedly down due to a lower number of vacancies and weaker demand for staff. The pace of contraction was sharp and the most pronounced since January.
Across all four monitored English areas, the Midlands saw the second-fastest drop in permanent placements, behind the South of England.
Temp billings across the Midlands decreased for the third consecutive month at the start of the second quarter. Panellists generally attributed the latest fall to a lack of demand for temporary staff amid an increase in the national minimum wage and higher National Insurance contributions. Moreover, the rate of decline was the strongest since March 2024. The fall in temp billings in the Midlands was softer than that seen at the UK level, however.
Permanent vacancies in the Midlands decreased for the eleventh consecutive month in April. Of the four monitored English regions, the Midlands saw the second-softest reduction in demand for permanent staff (behind London), despite the rate of decline strengthening from that seen in March.
Temporary vacancies in the Midlands meanwhile fell for the eighth month in a row in April. Though solid, the rate of reduction was the second-slowest of the four monitored English regions (after the North of England).
Stronger rise in permanent staff availability
The supply of permanent staff rose again in April, thereby extending the current sequence of increasing candidate numbers to 25 months. Moreover, the pace of growth accelerated from March and was the steepest in 2025 to date. Of the four monitored English regions, only the North of England recorded a steeper rate of increase. Anecdotal evidence suggested that redundancies had boosted candidate supply.
Temporary candidate availability in the Midlands increased in April, taking the current period of expansion to two years. The rate of growth eased slightly from March but remained marked overall. Panellists stated that the supply of temp staff had risen due to company layoffs and fewer job opportunities. Nevertheless, the rate of expansion was the softest of the four monitored English regions.
Permanent starters’ salaries rise solidly
Permanent starting salaries in the Midlands increased again in April, thereby extending the current sequence of inflation that began in March 2021. Though solid, the rate of pay growth softened slightly from the previous survey period, and remained well below the average seen over this period. The rise in salaries for new permanent joiners was linked by recruiters to efforts to attract suitably skilled candidates, which were often in short supply. The pace of salary inflation in the Midlands exceeded the UK average for the fourth month in a row.
Recruitment consultancies based in the Midlands registered an increase in temp pay rates for the fifth time in as many months during April. The pace of wage inflation was solid, reaching the highest since last October. Where temp pay rose, recruiters frequently attributed this to stronger than average increases in the national minimum and living wage rates.
Commenting on the latest survey results, Kate Holt, people consulting partner at KPMG in the Midlands, said: “April brought fresh challenges to the Midlands’ labour market, with permanent placements falling at the fastest pace since January and temporary billings also declining sharply. With vacancy numbers continuing to drop, employers across the region remain cautious, especially given the higher costs associated with employment that are now in force.
“Interestingly, candidate availability is on the rise once again, with increased redundancies and fewer job openings expanding the talent pool across both permanent and temporary markets. While salary inflation for permanent starters remains steady – and above the UK average – it’s temp pay that has seen the sharpest growth, spurred on by minimum wage uplifts. This combination of subdued demand and growing supply gives businesses hiring power, particularly for those looking to secure skilled talent in a cost-effective manner.”
