• Swindon & Wiltshire Economy
• Monday December 9 2024
• Author Name: Peter Davison

South West UK job vacancies fall at fastest rate since pandemic as business confidence slumps

The number of job vacancies in November fell at the fastest rate since the start of the pandemic, as business confidence slumped to its lowest level in almost two years, according to a report published today (Monday) by KPMG and the Recruitment and Employment Confederation.

Their Report on Jobs for November found that in the South West there was a sharp decline in new permanent joiners and a drop in starting salaries for the first time in 45 months, driven by cautious hiring.

Demand for workers has also fallen significantly, with the region experiencing its steepest reduction in job vacancies in over four years.

The report also recorded a fall in salaries offered to permanent new joiners for the first time in nearly four years.

The news will come as a blow to the government, which made economic growth and good jobs the first of its Five Missions for a Better Britain.

Although the trend has been gradual over more than a year, it has been accelerated by announcement of higher employers’ National Insurance announced in October’s Budget.

David Williams, office senior partner at KPMG UK in Bristol, said: “The job market in the South is feeling the strain with an accelerated decline in permanent placements, the sharpest cutback in over four years.

“There could be several factors driving this, which is a continuation of a downward trend in the region over the last few months, but it could be early signs that businesses are grappling with the Budget’s announcement of higher National Insurance and increased hiring costs set to take effect from April.

“That being said, with an oversupply of candidates, there is an opportunity for employers in the South West to access a broader talent pool at more manageable salary levels.

“Meanwhile job seekers will need to stay flexible and focus on up-skilling to stand out in an increasingly competitive market.”

Recruitment and Employment Confederation CEO Neil Carberry added: “No one should be surprised that firms took the time to re-assess their hiring needs in November after a tough Budget for employers.

“The drop in vacancies nationally was led by private sector permanent roles, and slower permanent recruitment billings across the month also reflected this trend.

“The real question now is whether businesses will return to the market as they go into next year with greater certainty about the path ahead.”

Recruiters in the South of England reported a significant and accelerated decline in new permanent joiners in November, with the rate of contraction reaching its fastest in eight months.

Anecdotal evidence noted that the October Budget, a general market slowdown and cost-cutting initiatives all contributed to this latest downturn.

Dan Barfoot, operations manager at Wiltshire- and Bath-based recruitment agency CMD Recruitment said: “Those findings chime with our own experience, and I think that after the Christmas peak some businesses will be reevaluating their headcount with the NI increase looming, and will probably look at a more temp-focussed workforce as a solution.

“He added: To be competitive you need to know who you’re competing with for staff, and this is where we offer insightful recruitment using this information as creating a recruitment strategy with our clients.”