This is what reveals the latest KPMG and REC survey, UK Report on Jobs, compiled by S&P Global.

However, temporary billings continued to increase, in contrast to a further reduction in permanent placements.

On the salary front, inflation in permanent salaries has eased while the salaries of temporary staff have seen a further increase.

The report is compiled from responses to questionnaires sent to around 100 recruitment and employment consultancies across the Midlands.

Data for October highlighted a sharp and accelerating reduction in permanent placements in the Midlands, extending the current streak of decline to five months.

Additionally, the rate of contraction was the fastest since January. According to those surveyed, market uncertainty means businesses are often reluctant to hire at the moment.

The reduction in permanent placements in the Midlands has been greater than the UK average. The greatest overall reduction occurred in the south of England, with the slowest decline in London.

Unlike permanent placements, temporary billings continued to rise in the Midlands in October. Furthermore, the pace of expansion was solid and faster than in September.

Temporary billings have now increased in each of the last seven months.

The north of England was the only other region to see temporary billings increase, with the Midlands seeing the biggest expansion overall.

The demand for permanent and temporary workers decreased in October, and to a greater extent than in September.

Permanent vacancies fell particularly sharply, with the rate of contraction the sharpest since January 2021. Only the south of England recorded a greater fall than the Midlands.

Demand for temporary workers declined for the second month in a row, and at the fastest rate since the first wave of the COVID-19 pandemic in mid-2020.

Due to layoffs, the availability of permanent staff increased significantly again in October. The number of applicants increased for the nineteenth consecutive month, although at a slightly slower pace than in September.

A higher number of candidates was observed in each of the regions monitored, with London in the lead. The slowest increase in permanent staff availability was recorded in the Midlands.

The rate of increase in the number of temporary applicants accelerated significantly in October and was the strongest since November last year. The rise in the Midlands is the second largest of the English regions monitored, just behind the capital.

As with permanent staff, the increase in the availability of candidates for temporary positions is mainly due to layoffs.

As has been the case on a monthly basis since March 2021, starting salaries for permanent workers in the Midlands increased in October. Panelists said this increase often reflected the placement of candidates into leadership positions.

The rate of inflation was marked and by far the highest of the four English regions monitored, despite a slowdown compared to the previous survey period. Modest increases were seen elsewhere.

After falling for the first time in almost four years in September, hourly rates of pay for temporary workers increased in October. Additionally, the solid rise is the fastest since June.

As was the case for permanent starting salaries, the increase in temporary pay rates in the Midlands was the strongest of the English regions covered. The gentlest increase was recorded in the South.

Kate Holt, People Consulting Partner at KPMG in the Midlands said: “The October figures recognize the challenges facing the Midlands labor market as demand for permanent and temporary staff continues to fall.

“That said, it is likely that many businesses in the region will have relaxed their recruitment until the results of the autumn budget are known.

“The National Insurance increase announced by the Chancellor brings an additional cost consideration for management teams, but we hope to see more businesses in the Midlands looking to implement their recruitment plans for 2025, the table is now set.”

Neil Carberry, chief executive of the REC, said: “These figures are a timely reminder that employer demand for new staff has weakened since the election – although the overall situation in the UK remains resilient compared to before the pandemic.

“There is a positive sign in this month’s data: temp bills have risen faster than in September and have now increased in each of the last seven months in the Midlands. But things are now at stake: businesses need to be persuaded to invest, with recent changes to NI thresholds, the minimum wage and potential changes to employment law all raising concerns.

“Businesses will be looking to the Government to present a clear, stable growth plan and detailed regulatory changes that enable rather than delay businesses over the coming months. Temporary work in particular is a fantastic way to help people out of inactivity, and the threat of new labor laws that undermine opportunities for workers must be addressed.

“There is little evidence in the pay data, with wages rising in the Midlands compared to the previous month, to suggest that the Bank of England should forgo further interest rate cuts, which would strengthen also business confidence And the data on shortage sectors is a timely reminder that implementing a skills strategy aligned with business needs is one of the biggest things government and business can do. could achieve by working together.