The latest KPMG and REC, UK Report on Jobs: North of England survey signalled concurrent growth in the recruitment of permanent and short-term staff. Both rates of expansion were slightly above their respective long-run averages and the strongest among the four monitored English regions.

Demand for both types of staff improved modestly in September, as permanent vacancies rose for the first time in five months. Pay growth was meanwhile sustained in September. In fact, starting salary inflation was its strongest in 26 months. There were also noticeable increases in staff availability over the month.

First rise in permanent staff appointments in four months

The North of England Permanent Placements Index rose above the crucial 50.0 mark in September, signalling a fresh rise in permanent staff appointments across the region. The pace of increase was the strongest recorded in 52 months and solid overall. The North also topped the rankings of the four English regions monitored by the survey. According to qualitative data, panellists linked the improvement to firmer demand for workers.

Recruiters based in the North of England signalled an increase in temp billings for the fifth time in as many months in September. The respective seasonally adjusted index dipped for the first time in six months, but remained consistent with strong growth. As was the case in July and August, the North signalled the steepest expansion of the four monitored English regions. Busier clients, new role creation and restructuring were some of the reasons behind the latest increase in temp billings.

Recruiters in the North of England indicated a fresh uptick in permanent job openings at the end of the third quarter. Although only modest in nature, this was the first rise since April.

Temporary vacancy growth was sustained for an eighth month in a row across the North of England. The pace of increase was slightly faster than in August, but still only modest overall. Regionally, the North topped the rankings for both permanent and temp staff demand.

The upturns in vacancies also compared favourably with declines at the UK level.

Growth in permanent labour supply slowest since February

September data signalled a further increase in the availability of permanent staff across the North of England, thereby stretching the current trend of expansion to 33 months. Panellists linked the latest upturn to redundancies amid challenging market conditions and reports of site closures. Although the rate of growth in permanent labour supply was the softest in seven months, it was still substantial overall and the quickest of the four monitored English regions.

Recruiters based in the North of England signalled a sharper rise in temp candidate numbers in September. The rapid upturn was the strongest since May and the most pronounced of the four monitored English regions. According to anecdotal evidence, the increase in temp labour supply reflected a combination of restructuring and greater job movement.

Rate of starting salary inflation hits 26-month high

Adjusted for seasonal influences, the Permanent Salaries Index posted above 50.0 again in September, signalling a tenth successive month of pay growth across the North of England. The rate of inflation was the strongest in just over two years and sharp in nature. The local increase in starting salaries was also the most marked of the four monitored English regions. Survey respondents noted that pay had risen due to efforts to secure suitably-skilled staff, but also the recruitment of people for more senior roles.

Reflecting a greater willingness to pay more for suitably-skilled labour, there was another increase in average hourly rates of pay for temp workers in the North of England in September. The current trend of growth was therefore stretched to four months, though the rate of inflation dipped to its lowest seen across the third quarter. The latest increase in pay was still solid, however, and the strongest of the four monitored English regions.

The North’s jobs market is showing real signs of momentum. Permanent hiring is growing at its fastest rate in more than four years, the region is leading the rest of England for both permanent and temporary staff demand, and starting salaries are rising faster here than anywhere else. It’s clear that businesses want talent, and they’re prepared to compete for it.

With the Autumn Budget less than a month away, businesses will be looking for measures that give them the certainty and confidence they need to keep investing and hiring. For the North, that means giving businesses the confidence to invest, hire and build the skills they need for the future.

The permanent jobs market is revving its engine nationally, with a first rise in permanent staff appointments in four months in the North of England. The pace of increase in permanent placements in the North was the strongest since mid-2022. If this trend continues, we could see genuine momentum building across the Northern labour market, with both permanent and temporary hiring now moving in the same direction, which is encouraging for jobseekers and the region’s economy.

The signal from businesses is that they are ready to hire, with a fresh uptick in permanent job openings in the North, while temporary vacancy growth was sustained for an eighth month in a row in the region. A Budget that gets business confidence moving again is key to keeping that momentum going. The geopolitical backdrop remains challenging for government and business alike. But the Chancellor cannot seize this moment with talk of stability alone. Employers want to hear not just how we deliver stability, but how we go for growth.