Midlands sees sharp decline in permanent staff appointments - report
Redundancies contributed to a steeper increase in permanent candidate availability as well as a fresh rise in temp staff supply, according to new analysis
There has been a "sharp decline" in permanent job placements across the Midlands, according to newly published research.
Analysis said recruitment consultancies across the region were reporting a decline in roles during March.
Redundancies contributed to a steeper increase in permanent candidate availability as well as a fresh rise in temp staff supply, says the latest KPMG and REC, UK Report on Jobs: Midlands survey, compiled by S&P Global.
In terms of pay, the research said starting salaries rose only slightly while temp wages increased at a stronger pace, however rates of pay growth remained historically muted in both cases.
Temp billings did rise though, with the pace of expansion accelerating to the fastest in 2026 to date.
The report surveyed around 100 recruitment and employment consultancies in the Midlands. They recorded a second straight monthly fall in permanent placements for March.
The rate of contraction quickened notably on the month to signal the most pronounced reduction since last October.
According to anecdotal evidence, the latest decrease in permanent staff appointments was due to economic uncertainty and a general slowdown in permanent hiring activity.
In contrast, March's data signalled a rapid rise in temp billings across the Midlands which stretched the current run of increase to eight months.
Moreover, the rate of expansion was the second-fastest since May 2022, behind only last December.
The latest uptick was partly linked by recruiters to a greater preference for flexible workers.
Moreover, the Midlands was the only monitored English region to register growth in temp billings.
Of the four monitored English regions, the Midlands recorded the strongest reductions in both permanent and temp vacancies.
Kate Holt, partner at KPMG in the Midlands, said: "March's figures point to a Midlands labour market still under pressure, with permanent hiring slowing more sharply as businesses weigh economic uncertainty and rising costs against longer-term recruitment plans.
"However, the strong rise in temp billings suggests demand has not disappeared, with many employers opting for flexibility while the outlook remains unclear. This caution is reflected in the wider market picture.
"The Midlands saw the steepest decline of any English region in both permanent and temporary vacancies while candidate availability continued to rise as redundancies fed into the labour pool, creating a more competitive environment for jobseekers.
"While employers may be holding back on permanent headcount, ongoing demand for temporary staff highlights underlying workforce needs. The key question now is whether improving economic confidence can translate this short-term activity into more sustained hiring."
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