The latest KPMG and REC UK Report on Jobs: North of England survey highlighted worsening jobs market conditions during May as permanent staff appointments and temporary billings both fell.
Permanent placements fell for a third month running and at the sharpest rate since June 2020, while temp billings posted the first drop since last November. Jobs vacancy growth also slowed, while there was a pickup in staff availability amid redundancies. Nevertheless, wage pressures remained historically elevated, with the North of England registering the strongest rates of pay increases in May of any of the four regions monitored by the KPMG reports – the North is defined as the North West, Yorkshire & Humber and North East.
Warren Middleton, office senior partner at KPMG in Manchester, said: “The latest findings reflect mutual hesitation from both businesses and prospective candidates here in the North as inflationary pressures continue to bite for all. This has resulted in the sharpest drop-off in permanent appointments across the region since the early stages of the pandemic back in June 2020, with temporary placements also now in decline for the first time in six months.
“We are seeing some green shoots, however, with the availability of those looking for permanent roles on the rise for a third consecutive month. Both parties will be hoping supply and demand marry up soon to help reverse the recent downturn before it gets any worse.”
The KPMG and REC, UK Report on Jobs: North of England is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the North of England.