• Swindon & Wiltshire Economy
• Tuesday May 13 2025

Recruitment activity falls sharply in South of England, says new jobs report

Recruitment activity in the South of England fell at its sharpest rate since January last month, with permanent vacancies declining at their fastest rate since 2020, according to a new report.

At the same time, candidate availability surged at the fastest rate in eight months, driven by layoffs.

Those are among the findings of the monthly UK Report on Jobs: South of England survey from Big Six accountancy firm KPMG and the Recruitment and Employment Confederation.

David Williams, Bristol office senior partner at KPMG UK, said: “After tentative signs that the job market had moved closer to stabilising in March, April saw a sharp reversal in the South of England’s labour market.

“Both permanent placements and temporary billings fell at their fastest rates since January, highlighting the persistent pressure businesses face from elevated employment costs and economic uncertainty.

“The implementation of higher National Insurance rates has likely amplified employer caution in recent weeks.

“At the same time, candidate availability is rising fast, giving businesses a wider talent pool to draw from.

“While permanent starting salaries edged up only modestly, temporary pay is rising at pace, likely in response to minimum wage changes.

“For organisations in the South West, this creates an opportunity to attract skilled talent more affordably, investing in longer-term workforce development and building long-term resilience.”

The report is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the South of England.

Dan Barfoot, operations director at Bath and Wiltshire recruitment agency CMD Recruitment, said: “I think most people saw this coming and its simply a knock on from NI increases and a government that is struggling with how to stimulate the economy.

“I think the jobs market will be static for another quarter with some candidates having to rethink work patterns if they find themselves out of a role.”

Pictured: Empty desks in an office, by Pavel Danilyuk at Pexels

Latest: Starting salaries up, but job vacancies down – report