The jobs market in the South West is the worst in the UK, with a fall in jobs and candidates, a new report shows.
The latest KPMG and REC, UK Report on Jobs: South of England survey revealed the jobs market remained “relatively subdued” in the region at the end of 2019.
The numbers of people finding permanent jobs continued to decline, albeit at a softer pace than in November, while temporary appointments rose only modestly.
Recruiters often mentioned that fewer vacancies and uncertainty around the outlook had affected their hiring decisions.
Notably, demand for permanent staff fell at the end of 2019, while temp vacancies grew only slightly.
Uncertainty also weighed on the availability of staff, which continued to decline sharply in December. As a result, starting pay for both permanent and temporary workers increased markedly as part of efforts to attract and secure suitably skilled workers.
Ian Brokenshire, senior partner for KPMG in Plymouth, said: “The South West has presented a very different picture to the rest of the UK over the last month. Permanent and temp candidate supply fell at quicker rates than seen on average across the UK, and notably, the South West was the only region to record a drop in both permanent placements and available permanent jobs.”
He added: “It seems that the political picture is becoming less uncertain, and it will be really interesting to see whether this gives a confidence boost to businesses in the region.
“If so, it will be reflected in hiring decisions at the end of this month. The South West has some catching up to do.”
The report found that recruitment consultancies in the South West registered a 10th consecutive monthly fall in permanent placements at the end of 2019. But the rate of reduction was the weakest seen for three months and modest overall.
In contrast, permanent staff appointments across the UK increased for the first time in 12 months, but at a subdued rate.
And while there was more, though modest, employment of temp workers in the South West, some panel members said this was due to previously delayed hiring decisions being rebooted. At the national level, temp billings growth quickened to the joint-fastest since April.
Demand for permanent staff in the South West fell fractionally in December, after broadly stagnating in November, while at a national level it strengthened slightly.
Uncertainty related to Brexit and the general election, as well as skill shortages, were cited as key factors weighing on permanent candidate supply in the South West. The decline also outpaced the UK-wide trend for the 10th month in a row.
But there was a rise in starting pay for the region’s new recruits during December, with the report saying that anecdotal evidence suggested candidate shortages had driven up pay offers. There was also a sustained increase in hourly rates of pay awarded to short-term staff during December.
The KPMG and REC, UK Report on Jobs: South of England is compiled by IHS Markit from responses to questionnaires sent to around 150 recruitment and employment consultancies in the South of England.
Recruitment & Employment Confederation chief executive Neil Carberry said: “After the uncertainty of 2019, there are some signs of a clearer outlook for hiring in today’s survey.
“With a new Government in place and the path ahead looking more predictable, some businesses have decided that they have waited long enough. The rate of decrease in permanent placements in the South has slowed, and this should give encouragement to both recruiters and employers – let’s hope this is a sign of positive things to come.”
