• Swindon & Wiltshire Economy
• Thursday March 12 2026

Fall in permanent job placements slows – but reverse is some way off

There was a softer reduction in permanent staff hiring across the South West region in February, according to a major jobs market survey.

Data from the latest KPMG and REC, UK Report on Jobs revealed the fall in permanent job placements was slowing.

However, temp billings fell back into decline after rising for the first time in two years in January.

Recruitment activity continued to be impacted by economic uncertainty and subdued demand for staff, according to recruiters.

Vacancies once again fell sharply which, combined with reports of redundancies, drove further marked increases in candidate availability.

Improvements in staff supply dampened rates of pay growth, with both starting salaries and temp wages rising at weaker rates in February.

David Williams, Bristol office senior partner at KPMG UK, said: “February’s data highlights how South of England businesses are taking a more cautious stance on hiring, with the sharpest fall in permanent placements of any English region.

“What’s important, however, is that the pace of contraction eased to its slowest for nearly two-and-a-half years – a welcome sign that we may be approaching a turning point as businesses reassess workforce strategies.

“What’s particularly telling is the continued demand for specialists in technology, engineering and professional services, even as overall hiring remains subdued.

“These persistent skills shortages indicate that growth-focused sectors are still actively building capability, and point to where opportunities will emerge as confidence returns.

“With rising candidate availability and the region’s established strengths in innovation and professional services, cost-conscious employers have an opportunity to secure talent while competition remains reduced.

“The question now is whether businesses will seize this window ahead of the new financial year.”

Neil Carberry, chief executive of REC, said: “There may still be a few bumpy months to come, especially in light of global instability, but the stabilising trend we have seen so far this year has continued.

“The report suggests that the worst of the hiring slowdown in the UK has passed but it is by no means a source of unalloyed celebration for the South of England where a slowdown in hiring conditions and recruitment freezes means it lags the improving picture in the Midlands and the North.

“A real turnaround requires growing confidence amongst businesses and consumers. There is cash in the system to spend if consumers and businesses feel better – a core goal of policy should be to tackle this by reducing the cost of doing business, which will in turn address the rising cost of living.

“From a more practical approach to the Employment Rights Act, to energy costs, the impact of business tax rises and planning reform, there is plenty to do that could back businesses to grow and create jobs sustainably.”

Dan Barfoot, operations manager at CMD Recruitment, which is one of the 150 regional agencies that contributes to the survey, said; “I think Neil Carberry is being very optimistic, as a lot depends on what sector you are in.

“With the employment law changes coming in April it is the months after this where you see the real fallout.

“The market for anyone hiring this year will be tough. With a cut on skilled worker visas and pressures on salaries will employers be willing to overpay the average market salary to secure staff?”