According to the latest KPMG and REC UK Report on Jobs: Midlands, temp billings fell for the first time in 11 months, which recruiters linked to fewer bookings and cost-cutting by employers.
Demand for permanent staff continued to decline, extending the current downturn to 26 months, though the rate of decline was the softest recorded this year.
Temporary vacancies rose for the first time in seven months, though at a slower pace than the UK average.
The supply of permanent workers rose at its fastest rate in four months, driven largely by redundancies, while starting salary inflation edged up to a five-month high but remained modest overall, with pay growth in the Midlands weaker than the UK-wide trend.
Kate Holt , people consulting partner at KPMG in the Midlands, said: “The Midlands job market is beginning to show signs of renewed confidence.
“Employers remain focused on controlling costs, but the return to permanent hiring suggests that more businesses are prepared to invest in the people and skills they need for the longer term.
“At the same time, the slight fall in temporary billings also shows that caution has not disappeared from every area of the market, and many businesses are continuing to make more considered workforce decisions.
“With more candidates entering the market and pay growth remaining measured, employers have a timely opportunity to strengthen their teams.
“Those with a clear understanding of their future skills needs will be well placed to secure experienced and specialist talent while it is more readily available.”
