That’s is according to the latest KPMG and REC, UK Report on Jobs: Midlands survey, compiled by S&P Global.

The report also revealed that in contrast, temporary billings continued to rise, but the rate of growth slowed to a six-month low.

Notably, the Midlands was the only monitored English region to see an increase in temp billings in February.

Turning to staff demand, both permanent and temporary vacancies declined at stronger rates.

Redundancies and fewer job openings led to a steeper rise in permanent candidate supply.

Conversely, the availability of short-term staff fell for the first time in 34 months amid reports that workers were hesitant to seek out temporary roles amid greater economic uncertainty.

On the pay front, both starting salaries and average hourly wages increased, but rates of inflation remained weak by historical standards.

The KPMG and REC, UK Report on Jobs: Midlands is compiled from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.

A renewed decline in new permanent joiners was recorded across the Midlands during February, thereby marking the first month of decrease since last November.

February survey data indicated a seventh straight monthly rise in billings received from the employment of short-term staff across the Midlands.

The Midlands was the only English area of the four monitored to record growth in temp billings, with declines seen elsewhere.

Permanent vacancies fell rapidly across the Midlands in February, with reductions now noted on a monthly basis since June 2024.

Demand for temporary workers also deteriorated across the Midlands in February. The rate at which short-term vacancies decreased was the most pronounced for a year and sharp.

As has been the case in each month since April 2023, permanent staff availability rose across the Midlands in February

A modest decline in temp staff supply was recorded across the Midlands in February, thereby concluding a 33-month sequence of expansion.

Moreover, the Midlands was the only monitored English area to record a fall in temp candidate numbers.

Starting salaries across the Midlands rose again in February, thereby stretching the current run of inflation to exactly five years.

A third successive monthly increase in temp wages was recorded across the Midlands in February.

Kate Holt, People Consulting partner at KPMG in the Midlands said: “February’s data points to a more cautious hiring environment across the Midlands.

“Permanent placements fell for the first time in three months as client demand softened and economic uncertainty weighed on employers’ decision-making, while vacancies for both permanent and temporary roles also declined.

“Employers are no doubt looking ahead to the increase in the National Minimum Wage in April and assessing how it’s likely to impact their margins before committing to job postings.

"Despite this backdrop, the Midlands continued to show resilience in the temporary labour market. It was the only monitored region to record growth in temp billings – its seventh straight month of expansion.

“This highlights how employers are turning to flexible staffing to manage through uncertainty."