'Troubling time' for North's job market as permanent appointments fall

The report is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the North of England.

The seasonally adjusted Permanent Placements Index signalled a solid decline in the number of people placed into permanent roles across the North of England in September, posting below the neutral 50.0 mark for a third consecutive month.

Cautious hiring policies were cited by recruiters as a factor driving the downturn, although others commented on sluggish market conditions. But the fall was softer than the one recorded in August.

Euan West, Office Senior Partner for Leeds at KPMG, said: “These findings depict the continuation of a troubling time for the region’s job market, with a combination of business and candidate caution amid the ongoing economic uncertainty among the reasons for a third consecutive dip in permanent appointments. However, there are also green shoots both with the increase in temporary billings for the first time in five months, and the rise in available staff resulting in pay pressures cooling at least for the time being.

“It will be interesting to see if these trends continue, and whether inflation rates edging lower will mean an improvement in the outlook of employers and jobseekers in the coming months.”

Neil Carberry, Chief Executive of the REC, said: “Employers tell us they are feeling better about themselves as the year moves on, and today’s data does suggest the possibility of a turnaround in hiring over the next few months.

“This feels like a market that is finding the bottom of a year-long slowdown. And the relative buoyancy of the private sector is likely to be driving this more positive outlook. Some sectors such as accounting/financial, blue collar, engineering and healthcare continue to experience very strong demand in the North. Along with high inflation, this is likely to be contributing to the continued growth of pay for temps and perms alike.”