Permanent job placements fall in the Midlands

The regional survey by KPMG and the Recruitment and Employment Confederation, conducted between June 12 and 26, also found that temporary work rose for the first time since December

Some employers have put permanent recruitment freezes in place amid economic uncertainty.

Recruiters reported clients requiring more flexible staff and an increasing number of people looking for temporary work.

The supply of both permanent and temporary candidates rose sharply in the region.

The survey is based on responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

Demand for permanent staff in the Midlands rose for the 29th consecutive month in June. The increase in vacancies was strong, but softened from that seen in May.

Among the English regions, the Midlands saw the second-fastest rise in vacancies, behind the North of England.

Kate Holt, people consulting partner for KPMG in the Midlands, said: “While June’s data shows demand for permanent staff, the actual placements fell showing hesitancy from businesses to hire and commit to candidates that may not meet all of the requirements. This is supported by the accelerated increase in temporary candidates as they give employers the opportunity to ‘try without committing’."

Neil Carberry, REC chief executive, added: "The labour market remains very tight. There are still broad skills shortages, with accountancy and construction among those sectors struggling to find and retain workers. This is despite the supply of candidates across the job market continuing to rise in the Midlands, and for four consecutive months across the UK.

“The growth in vacancies for staff in hotel and catering and blue-collar jobs in Midlands, and for temp positions in retail across the UK, suggest businesses anticipate that people are still prepared to spend their wages on goods and services despite the fall in their purchasing power and the wider cost-of-living crisis."