Permanent job appointments have continued to fall across the North of England new research points out.
A study from KPMG looking at recruitment activity across the North East, Yorkshire & Humber and the North West revealed permanent hiring fell in February, making it a continuous fall of eight months. Uncertainty in the economy and reduced demand were marked as the reasons for the slump, though the downturn was less pronounced than at the national level.
Meanwhile the number of permanent vacancies across the North also fell, stopping a three-year growth period. Businesses wanting greater certainty was cited as reason behind the move but at the same time the data pointed to a rise in the availability of permanent staff as job seekers sought out positions that gave them more security in uncertain times.
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The reports authors spoke to recruitment agencies across the North who also showed a drop in temporary billings for the first time in four months and at its joint-quickest since June 2020. Those agencies reported the end and non-renewal of short-term employment contracts had caused more temporary staff to become available.
On pay, the research suggested starting salaries rose again in February – extending the trend to three years. And the North recorded the sharpest rise of four UK regions monitored. Wages for temporary jobs also grew for a third consecutive month.
Neil Carberry, chief executive of the Recruitment and Employment Confederation, said: “As inflation is falling back to target earlier than expected, it’s time to get the focus on growth. This month’s survey shows the market slowing, and recruitment agencies registering a drop in temp billings for the first time in four months in the North. In saying that, there is a notable demand for people to fill accounting, finance and blue-collar roles in the North.
“Given recent news about GDP dropping, this overall picture is no surprise – but it is certainly still quite resilient by comparison with previous recessions. We know the economy has the potential to create jobs and opportunities – but it can only do that sustainably if we can get economic growth going.
“Following the Budget last week, which didn’t address some of the key drivers of growth like skills, infrastructure and reducing the cost of investment and employment, all eyes are on the Bank now. Lower interest rates will help build firm’s confidence to invest.
“The temporary labour market is the unsung hero of the economic uncertainty of recent years. It keeps the cogs of the economy turning amidst uncertainty and labour shortages – but it still needs nurturing. As we approach the General Election, businesses will be looking to politicians for commitment on this, and reforms of regulation that will support it from IR35, to regulating of the umbrella market and delivering flexibility to the Apprenticeship Levy.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
