• Swindon & Wiltshire Economy
• Wednesday May 13 2026

Permanent recruitment fell sharply in April – report

Permanent recruitment across the South of England fell sharply in April as rising uncertainty and softer business confidence continued to weigh on hiring decisions, according to the latest KPMG and REC Report on Jobs.

At the same time, employers turned more to temporary staff, driving a fresh increase in temp billings as firms sought greater flexibility in a difficult trading climate.

The survey, compiled by S&P Global from around 150 recruitment and employment consultancies across the South of England, found that permanent placements dropped at their fastest rate in eight months.

Recruiters linked the decline to weak market confidence, a slowdown in hiring activity and wider geopolitical concerns, including the war in Iran. Demand for permanent workers also remained under pressure, with vacancies falling at a marked pace.

Temp hiring told a different story. Billings for short-term staff returned to growth in April after two months of decline, rising at the strongest pace since the start of 2024.

Recruiters said firms were still hiring, but were clearly favouring flexible staffing solutions over long-term commitments. That shift could be especially relevant for South West businesses balancing growth plans with caution on costs and cash flow.

Labour supply also continued to rise. The number of candidates available for permanent roles increased sharply, while availability for temporary work rose even faster, reaching its strongest level since November.

Recruiters pointed to redundancies and a slowdown in hiring as key reasons for the growing pool of applicants. For employers, that may ease some recruitment pressure, but it also reflects a softer labour market overall.

Pay trends added another layer to the picture. Starting salaries for permanent roles rose for the sixth month in a row, with growth improving to a four-month high, although it remained modest by historical standards.

Temp wages also accelerated, with the pace of inflation reaching a one-year high and outpacing all other monitored English regions. According to recruiters, stronger increases in the national minimum and living wage rates were helping push pay higher.

David Williams, Bristol office senior partner at KPMG UK, said: “April’s figures suggest that employers across the south are still reluctant to commit to permanent hiring, with business confidence continuing to be held back by wider uncertainty.

“The sharper fall in permanent placements shows that many organisations are continuing to pause or slow long-term recruitment, even where underlying demand for skills remains.”

He added: “At the same time, the return to growth in temp billings points to a market that is adapting rather than stalling.”

Neil Carberry, REC Chief Executive, said businesses were concerned about inflation, borrowing costs and supply chain disruption, but noted that temporary work was helping firms keep plans moving.

“The fresh increase in temp billings in the South of England reflects the UK’s strongest growth in two and a half years last month in such temp hiring,” he said.

Survey contributor Dan Barfoot of Bath- and Wiltshire-based recruitment specialist CMD Recruitment said: “The trend that we predicted at the start of the year is certainly happening, and after looking at some other data this week the time to hire also seems to be creeping up.

“A lot of companies are now looking for temp resource for short-term projects, as with an uncertain market it eases the commitment pressure, but it’s whether a candidate will take a short-term opportunity.

“It’s certainly challenging to hire, so this is why understanding the market is key, and to support this we can offer a free no obligation feasibility survey to give you a benchmark if going to market.”