• Swindon & Wiltshire Economy
• Tuesday June 24 2025

Starting salaries up, but job vacancies down – report

Starting salaries are growing, but job vacancies have declined in the West, according to a new report.

Starting salaries continued to rise during May for the third month on the trot, but the pace of growth started to slow, according to the latest Report on Jobs carried out by Big Six accountancy firm KPMG and the Recruitment and Employment Confederation.

At the same time, the number of permanent jobs advertised declined at the fastest rate in 2025 so far, while the number of temporary jobs fell at the sharpest pace since January.

Meanwhile, the number of candidates continued to grow – at the fastest rate for 18 months – caused by redundancies and recruitment freezes.

Commenting on the latest survey results David Williams, Bristol Office Senior Partner at KPMG UK, said: “Hiring activity across the South of England remained under pressure in May, with permanent staff appointments falling at the steepest rate this year and temporary billings also declining sharply.

“Lingering recruitment freezes, tighter budgets and a degree of economic uncertainty continue to hold back demand.

“On the other hand, candidate availability has risen significantly, with permanent and temporary labour supply climbing at the fastest rates for 11 and 18 months, respectively.

“This shift reflects continued redundancies and a shortage of open vacancies, creating a broader talent pool for employers to draw from.

“For businesses in the South West, this is a timely moment to reassess workforce strategies. With an expanding talent pool, now is the time to invest in people and plan for longer-term growth.”

Dan Barfoot, operations manager at Wiltshire recruitment specialist CMD Recruitment, which contributes to the Report on Jobs, said: “I think with the NI increase and rising energy costs this is the reason for wages going up at a slower rate. It was going to happen and the bubble burst a little. I also think companies are seeing what’s going to happen in the next six months.

“The use of AI in call centres has led some large companies to rapidly cut headcount, while a lot of companies are making job cuts as a precaution, and it’s a good time to move on staff who may not have adapted with the business, and this goes hand in hand with recruitment freezes.

“2025 will be a year of uncertainty for many,” he warned.

Latest: Jobs market cooled during Flaming June