• Swindon & Wiltshire Economy
• Friday November 14 2025

Hiring slowdown eases in South West, but demand for staff remains weak

Recruitment activity across the South West showed tentative signs of stabilisation in October.

That’s according to the latest KPMG and REC, UK Report on Jobs: South of England, compiled by S&P Global.

While hiring conditions remained subdued overall, both permanent and temporary recruitment declined at their slowest rates in nearly two years, signalling that the downturn in the region’s labour market may be easing.

Permanent placements in the South of England fell at the weakest pace since 2021, with employers reportedly holding back on recruitment amid persistent economic uncertainty and anticipation of the upcoming government Budget. Despite the slowdown, the South still fared better than the national average, where declines in permanent hiring were steeper.

Temporary recruitment also contracted, extending a 21-month run of decline. However, the fall was only modest — the weakest in nearly two years — contrasting with a slight upturn in temp billings nationally. Recruiters in the South West attributed the drop to fewer job opportunities and a muted business climate.

Vacancies for both permanent and temporary positions continued to fall sharply, with the South of England seeing the largest reductions in staff demand across all UK regions. Demand for temporary workers fell at its fastest rate since April, while permanent job vacancies declined at their slowest pace in five months.

In contrast, staff availability rose strongly, as redundancies and weaker hiring demand pushed more candidates into the market. The South recorded the steepest increase in permanent labour supply and the quickest rise in temporary staff availability among the four monitored English regions.

And pay pressures eased further. Starting salaries slipped fractionally, while hourly rates for temporary staff fell for the fourth month running — the fastest drop since July. Recruiters linked falling pay to softer hiring activity and an improving pool of candidates.

David Williams, Bristol office senior partner at KPMG UK, said: “October’s figures show encouraging signs for the South’s recruitment market, with permanent placements falling at their slowest rate in two years.

“However, the region’s continued position as the weakest performer across England for staff demand points to deeper confidence issues, with employers holding back on hiring decisions ahead of the Autumn Budget later this month, and amid a backdrop of ongoing economic uncertainty.

“The disconnect emerging in the market is striking. Candidate availability is on the rise, driven partly by redundancies, yet hiring remains subdued and pay pressures have softened notably.

“For South West businesses willing to look beyond near-term uncertainty, this creates an opportunity to access quality talent at more competitive rates and build capability for when conditions improve.”

Dan Barfoot, operations manager at CMD Recruitment, who contributes to the report, said: “This pattern of decline for both permanent and temporary jobs is common with this time of year, with the temporary work sector being softened by some clients having a Christmas seasonal peak.

“The national average being higher due to Wiltshire’s high number of SMEs, but we are all waiting on the next budget to decide the future planning of workforce for 2026.

“With the drop in roles, and clients now under pressure for staff to have a presence in the office, we’ve seen a drop in hybrid and remote roles, and I feel this will continue throughout Q1 of 2026.

Image by Vlada Karpovich at Pexels