The latest KPMG and REC, UK Report on Jobs: Midlands survey, compiled by S&P Global, signalled a much softer reduction in permanent placements midway through the third quarter of 2025. Temp billings meanwhile increased for the third time in the past four months, albeit only marginally.
At the same time, recruiters suggested that fewer vacancies and redundancies had contributed to a sharper increase in permanent candidate availability, though recruiters noted a renewed rise in demand for temporary workers during August.
On the pay front, the rate of permanent salary inflation accelerated since July, reaching the strongest since April 2024. Temp pay meanwhile increased at the strongest pace since May.
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.
Softer decline in permanent placements
August 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 weaker demand for staff and fewer vacancies. The pace of decrease eased sharply from July, however, and was only modest.
Across all four monitored English areas, the Midlands saw the softest drop in permanent placements.
Temp billings across the Midlands increased for the third time in the past four months midway through the third quarter. Panellists generally attributed the latest rise to improved demand for temporary workers. The rate of increase was only marginal, however.
The rise in temp billings in the Midlands bucked the wider UK trend, with the three other monitored English regions recording sustained falls.
Permanent vacancies in the Midlands decreased for the fifteenth consecutive month in August. Though solid, the pace of contraction was the second-slowest seen across the four monitored English areas, after the North of England.
Temporary vacancies in the Midlands meanwhile rose for the third time in four months in August. Whilst only marginal, the increase contrasted with a solid fall at the national level.
Stronger rise in permanent staff availability
The supply of permanent staff rose again in August, thereby extending the current sequence of increasing candidate numbers to 29 months. Moreover, the pace of growth accelerated from July and was the steepest since December 2023. That said, the Midlands recorded the slowest increase in permanent candidate availability of all four monitored English areas. Anecdotal evidence suggested that redundancies and fewer job opportunities had driven the latest upturn in candidate supply.
Temporary candidate availability in the Midlands increased during August, as has been the case in each month since May 2023. The rate of expansion picked up slightly from July and was sharp overall. Panellists stated that the supply of temp staff had risen due to fewer vacancies and redundancies. Nevertheless, the rate of expansion was softer than that seen at the UK level.
Permanent starters’ salaries rise sharply
Permanent starting salaries in the Midlands increased again in August, thereby extending the current sequence of inflation that began in March 2021. The rate of pay growth accelerated sharply from the previous survey period and was the steepest seen since April 2024. The rise in salaries was often linked by recruiters to efforts to attract suitably skilled staff.
The pace of salary inflation in the Midlands was notably stronger than the UK average.
Recruitment consultancies based in the Midlands registered an increase in temp pay rates for the ninth time in as many months during August. Though modest, the pace of wage inflation was the strongest in three months. London was the only other monitored English area to record an increase in temp wages in August, as falls were seen across the North and South of England.
Commenting on the latest survey results, Kate Holt, People Consulting Partner at KPMG in the Midlands said: “For the first time in a long time, the Midlands job market is showing tentative signs of recovery, testament to the adaptability and resilience of the businesses operating in the region. Permanent placements are still decreasing, but at a much slower rate – the softest decline of any monitored region.
“Temporary hiring continues as a critical lever for flexibility. Indeed, demand for temporary staff is still rising, and temporary billings are increasing in tow. Employers are also navigating a shifting talent landscape, with increased candidate availability creating new opportunities to rebalance teams and manage costs more strategically. Pay pressures remain, but more than ever, they’re reflecting a proactive approach from employers to secure essential skills amid ongoing uncertainty.”
Neil Carberry, REC Chief Executive, said: “Employers need a shot of confidence along with their seasonal flu jabs this autumn. August saw recent declines in the market moderating, and a few positive signs – such as an improving market for temps in the Midlands. Overall, the pace of decrease in permanent placements in the Midlands eased sharply on July and temp billings across the region increased for the third time in the past four months.
“There is certainly potential out there – but with fewer vacancies and more candidates looking for work across the UK, the overall picture is still subdued nationally. While we have seen a summer slowdown, we will hopefully see more positive signs when the September data come through next month.
“All eyes are now on the Autumn Budget, in hope now that the Chancellor won’t do any further damage to the labour market with costs on hiring. For the economy to thrive, the Budget must recognise the need for investment in people. Long-term investment in skills, workforce stability, a more practical approach to the Employment Right Bill and meaningful partnerships with employers will yield far more enduring returns than short-term fixes.”
