Permanent placements in Midlands fall at fastest pace for 16 months

Temporary billings continued to increase, albeit at a softer rate than that seen in November. 

Demand for permanent staff continued to fall in December, with the rate of decrease the most pronounced in four-and-a-half years.

Concurrently, recruiters suggested that redundancies had contributed to additional candidates being available to work, as indicated by sustained increases in both permanent and temporary staff supply. 

On the pay front, permanent salary inflation remained modest, and well below the series average. Temp pay meanwhile rose for the second time in three months.

 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.

Kate Holt, People Consulting Partner at KPMG in the Midlands said: “While the Midlands saw the second-softest fall in permanent placements in the UK during December, the region's businesses are still holding back on recruitment against an uncertain backdrop.

 "A drop in permanent vacancies - the most marked since June 2020 - shows firms are worried about the economic outlook, despite signs of more stable conditions in 2025. 

 "If uncertainty prevails, Midlands firms must consider longer-term solutions to secure the skills they need to grow – whether this means investing more heavily in learning and development for existing staff or adapting their hiring strategies to attract the right candidates.”

REC Chief Executive Neil Carberry added: “This report emphasises a weak mood in some businesses as they built their budgets for this year, and made changes designed to save on costs after a tough Budget. 

"That said, sentiment can change quickly. Temp billings across the Midlands saw growth for the ninth consecutive month at the end of 2024. 

"December is always a hiring low point, and a new year brings new hope – with inflation under control, low unemployment and economic growth expected, the fundamentals are better than many appreciate. 

"It is what happens now, as firms return to the market in January, that will decide the path ahead. 

"Recruitment is one to watch in early 2025 because it is one of the earliest indicators of a broader economic recovery, with any sign of a turn hugely significant with the sector contributing a massive £44.4bn to the UK economy in 2023.”