• Swindon & Wiltshire Economy
• Monday April 14 2025

South West starting salaries increase for first time in five months

South West starting salaries have increased for the first time in five months, according to a new report.

However, recruitment firms in the region say low confidence around the economic outlook and tighter hiring budgets have weighed on staff recruitment.

Softer, but still sharp reductions in demand were meanwhile signalled for both permanent and short-term workers, according to the latest KPMG and REC UK Report on Jobs.

Salaries awarded to new permanent joiners in the South of England increased modestly during March, ending a four-month period of decline.

Recruiters often noted that employers raised their pay offers to attract and secure candidates that had the most suitable skills.

However, fewer job opportunities and company lay-offs led to steeper upturns in the availability of both permanent and temporary staff at the end of the first quarter.

The KPMG and REC, UK Report on Jobs: South of England is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the South of England.

David Williams, senior partner at the Bristol office of KPMG UK, said: “While the UK job market remains under pressure, the pace of decline in the South slowed in March – suggesting that things may be bottoming out despite broader economic uncertainty.

“Notably, candidate availability is on the rise, and perhaps counterintuitively, starting salaries are too, with employers appearing willing to pay more to attract and secure the right skills.

“For the South West’s talent pool, it’s further proof that experienced and skilled individuals are still able to access roles in thriving sectors such as aerospace and tech.”

Dan Barfoot of CMD Recruitment – one of the recruitment consultancies that contributed to the report  – said: “A lot of people are sitting tight right now as with so much turbulence in the financial markets it is certainly a debatable time if you wish to move to a new job.

“Salaries have increased locally, but I think this is purely with annual increments, and we could see a tight labour market for the next six months.”