North England temp staffing surges as permanent hires decline

A KPMG and REC labour market report covering June shows that temporary staffing in the North of England rose at the strongest rate in two years, with billings and pay increasing – temp pay rose for the first time in four months. At the same time, permanent placements fell for the first time in five months, marking a reduction in permanent job vacancies. Recruiters linked the shift to heightened uncertainty surrounding the Middle East conflict and broader economic conditions, citing a greater preference for short‑term contracts and project‑based work.

The report also noted a rise in average starting salaries for new permanent hires, reaching a five‑month high, while the supply of both permanent and temporary labour continued to grow, extending a multi‑month trend of increased temporary labour availability.