Report highlights sharp dip in permanent placements

And the latest KPMG and REC, UK Report on Jobs survey also said temporary billings continued to increase and at a steeper rate than July.

The report is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

It said August data signalled a further decline in the number of permanent placements made by recruitment agencies in the Midlands.

Staff appointments were reportedly curtailed by hesitancy among firms to hire and falling vacancies. At the UK level, the Midlands saw the second-sharpest drop in permanent placements.

Temp billings across the Midlands saw growth for the fifth consecutive month midway through the third quarter. The rise in temporary staff placements contrasted with the UK average which signalled a marginal decrease.

Neil Carberry, REC Chief Executive, said: “August is always a difficult market to judge because of the summer break, but this month’s survey supports what we have been hearing around the country – employers are still cautious.

“They are waiting for a clear signal that sustained demand is around the corner. The new government said growth was its main priority – but it needs to deliver now.

“A vision for a positive, prosperous Britain has to accompany the fiscal realism that is being served up right now. We are encouraging the government to

work with business to design changes that employers can work within, and to reassure them that they aren’t taking risks by hiring now.”