• Swindon & Wiltshire Economy
• Tuesday October 14 2025

Permanent placements fall at slowest rate in 21 months

The softest decline in permanent staff appointments for 21 months was recorded during September, according to the latest KPMG and REC UK Report on Jobs.

However, the rate of reduction remained marked amid reports of weak employer confidence and tighter hiring budgets.

As a result, temp billings also fell sharply at the end of the third quarter. Demand for staff continued to weaken, with both permanent and temporary vacancies declining at historically steep rates.

The sustained drop in hiring and reports of redundancies led to further rapid increases in candidate availability.

The South of England saw the quickest upturns in labour supply of all four English regions, while starting salaries and temp wages fell again in September, though at softer rates than in August.

David Williams, Bristol office senior partner at KPMG UK, said recruitment activity across the South remained subdued, but September showed tentative signs of stabilisation. Permanent hiring fell at the slowest pace in nearly two years, suggesting employers were adopting a more measured approach.

Temporary hiring, however, continued to struggle as firms held back on short-term spending. The South saw the steepest increase in candidate numbers across the UK, with temporary staff supply rising at the fastest rate since the pandemic.

David said this as an opportunity for South West businesses to secure skilled staff at more favourable pay levels.

Permanent staff hiring declines at softer rate

The downturn in permanent staff appointments across the South eased in September. Though still sharp, it was the softest since December 2023.

Recruiters attributed this to employers’ reluctance to commit to new hires amid subdued market conditions and high staffing costs.

The South recorded the steepest fall in placements among English regions, while the Midlands saw the mildest.

Permanent staff availability rises at slower but still rapid pace

Candidate availability for permanent roles continued to rise across the South at the end of the third quarter. Although growth slowed from August’s multi-year peak, it remained strong, driven by redundancies and fewer job openings.

The region recorded the fastest rise in permanent staff supply across England. Temporary candidate supply also rose sharply, marking nearly two and a half years of consecutive growth and the quickest increase since November 2020. This was linked to company layoffs and reduced project volumes.

Starting salaries fall at softer rate

Starting salaries for new permanent joiners fell for the second consecutive month in September, though the pace of decline eased and was modest overall. Recruiters cited abundant candidate availability and cost concerns as key factors.

Only the North also reported lower starting pay, while the Midlands and London saw increases. Temporary wages also declined for the third straight month, though the drop was marginal and the softest during this period. The South’s decline contrasted with a slight national uptick in temp pay. Greater candidate supply and lower demand were cited as causes.

The KPMG and REC, UK Report on Jobs: South of England, compiled by S&P Global, draws on responses from around 150 recruitment consultancies, including Wiltshire and Bath-bases CMD Recruitment.

Dan Barfoot, operations director at CMD Recruitment, said: “A lot of businesses have started to think about seasonal peak if they work in a sector affected by this, so this has seen the temp numbers soften but will these run longer then then the next quarter.

“Permanent roles are still there, but from speaking to a lot of candidates lately there a lot of them coming off of FTC’s fixed term contracts, and struggling to find a role with the working pattern they are currently on.

“As some businesses are still reviewing work patterns, and know of at least a couple who have asked staff to return to the office for an extra day a week to address KPI and sales being down.

“I think there will be some tough decisions for business owners to make before Christmas topped off with another budget looming.”