The latest KPMG and REC, UK Report on Jobs: North of England survey saw recruitment trends diverge again in October. There was a steeper reduction in permanent staff appointments, while temp billings rose fractionally in October. There were signs that staff supply continued to outweigh demand. Staff availability rose substantially again, while vacancy growth remained subdued by historical standards. With that, October signalled only marginal increases in pay for both types of staff across the North of England. The KPMG and REC, UK Report on Jobs: North of England is compiled by S&P Global from responses to questionnaires sent to around 150 recruitment and employment consultancies in the North of England. Sharpest decline in permanent staff appointments since June As has been the case in each month since July 2023, the number of staff placed into permanent roles in the North of England declined in October. The rate of contraction was not only marked, but the quickest seen for four months. Recruiters in the region blamed caution surrounding the impending Autumn Budget and fewer job vacancies. The drop in permanent hiring activity was widespread across all four monitored English regions. Only London recorded a slower decrease than that seen locally. After just a brief period of decline in September, the seasonally adjusted Temporary Billings Index posted above the crucial 50.0 mark in October, to signal a rise in billings received from the employment of temp staff in the North of England. Though the rate of expansion was only fractional, it compared favourably against the UK average, where a contraction was registered. Only the Midlands recorded a faster increase in temp billings than in the North of England. There were only fractional increases in job vacancies for both permanent and temporary positions across the North of England in October. October survey data showed that although permanent vacancy growth was sustained for an eighth successive month, it was indeed the slowest in the sequence. Though only fractional, temp vacancy growth rebounded after a month of decline in September. Permanent labour supply rises at softer, but still substantial rate There was a further sharp rise in permanent staff availability across the North of England in October, thereby extending the current run of expansion to ten months. According to anecdotal evidence, labour supply was pushed up due to subdued hiring conditions and increased redundancies. Although the rate of growth was the slowest seen since February, it remained faster than the UK average. October survey data pointed to a sustained increase in the availability of workers for short-term roles across the North of England. As well as steep, the rate of expansion accelerated to the strongest for nearly four years. The local increase in temp staff supply was largely in line with the UK-wide trend in October. Marginal rise in permanent starting salaries in October Recruitment consultancies based in the North of England recorded a further rise in salaries awarded to new permanent joiners, as has been the case since March 2021. The rate of inflation picked up slightly from September’s three-and-a-half year low, but was nevertheless only marginal. Though the North of England was the only monitored region to see starting salary pressures build, the upturn remained softer than the UK average. The seasonally adjusted Temporary Wages Index posted above the neutral 50.0 mark in October, to signal an eleventh consecutive monthly increase in temp wage rates across the North of England. That said, the rate of inflation was the softest in the aforementioned sequence and slightly slower than that seen at the UK level. Phil Murden, Leeds Office Senior Partner at KPMG UK, said: “Permanent hires have been declining for over a year, and the speed of contraction in October does paint some concern in the North. “Many firms in the region will have delayed their recruitment plans in advance of the Autumn Budget, which is likely to have prompted pause for thought. “The increase in National Insurance announced by the Chancellor provides a further cost consideration for management teams. Nonetheless we hope to see more Yorkshire firms now looking to enact their recruitment plans for 2025 benefiting from more certainty and clarity.” Neil Carberry, REC Chief Executive, said: “These figures are a timely reminder that demand from employers for new staff has weakened since the election – though the overall picture in the UK remains resilient by comparison to pre-pandemic. “There is a positive sign for The North with temp vacancy growth rebounding after a month of decline in September and an increase in permanent vacancies. But things now stand in the balance – firms need to be persuaded to invest, with recent changes to NI thresholds, the minimum wage and prospective changes to employment law all causing concern. “Firms will be looking for the Government to deliver a clear, stable growth plan and detailed regulatory changes that enable firms rather than put them off over the next few months. Temporary work in particular is a fantastic way of helping people take steps out of inactivity, and the threat of new employment laws undermining opportunities for workers must be addressed. “The very marginal increase in salaries in October and weakest rise in temp wages for nearly a year in the North suggests the Bank of England should not step back from further cuts to interest rates, which will also boost business confidence. And data on shortage sectors across the UK is a timely reminder that delivering on a skill strategy that is aligned to business needs is one of the biggest things Government and businesses could achieve working together.”

Hull-based Chameleon Business Interiors, the design-led interiors firm, has made a significant move in its growth strategy by acquiring Hunters Contracts North, a Cheshire-based office furniture specialist with over 20 years of experience in the North West. This acquisition not only enhances Chameleon’s portfolio but also brings in key members of the Hunters North team – including managing director Sarah Morriss and head of customer services Pip Bennett – to strengthen its presence in the region. Shaun Watts, Chameleon’s chairman, highlighted the strong synergy between the two companies, emphasising how Morriss and her team’s extensive experience and expertise aligns with Chameleon’s vision for development and brand enhancement. This acquisition marks a pivotal moment for Chameleon – which has been designing and delivering workspace interiors for 25 years – as it continues to expand its global footprint. Sarah Morriss, managing director of Hunters North, added: “We’ve built a fantastic business with a reputation for attention to detail and outstanding customer service. “Our clients include McDonald’s, TT Games, First Response Finance, Canal & River Trust and CBRE. They trust us to deliver projects that meet their needs and now, with Chameleon, we can offer even more comprehensive interior design, fit out and refurbishment solutions. We’re thrilled about this new chapter and excited to continue offering exceptional service to our clients.” The recent expansion of Chameleon’s sales team and the appointment of a new head of marketing are also part of its strategy to drive growth in the UK, US, and Canadian markets.

PAB Sema4 has been allocated extra funding to support additional Lincolnshire businesses after the success of its Global Gateway Programme. The scheme – designed to amplify growth across Lincolnshire’s business community by equipping local companies with essential skills for international success – surpassed outcome targets and received fantastic feedback from customers. Now the programme is receiving extra funding to support businesses in East Lindsey – and organisers are calling for local companies to come forward to take advantage of it. E-commerce & Marketing Specialist Advisor at PAB Sema4, Nigel Garner, said: “Leveraging a rich foundation of academic insight, hands-on expertise, and cross-disciplinary research, this programme is designed to equip people with practical competencies required to excel in the international arena. “Ideal for professionals overseeing multicultural teams within logistics or manufacturing, those immersed in the intricacies of sales and marketing, or navigating the complexities of international markets, Global Gateway offers strategies and tools to enhance effectiveness in a global setting.” Funded by the UK Shared Prosperity Fund, the programme is free to eligible businesses in East Lindsey and is designed to boost economic growth and community development. Intercultural Communication Trainer and Advisor at PAB Sema4, Iwona Lebiedowicz, said: “We are delighted to offer this exciting programme of courses for professionals, giving them the opportunity to harness the latest research, innovation and thinking that the PAB Sema4 team has to offer. “Across the UK, many people work in cross-cultural settings, engaging with remote or international teams. However, the messages we send are not always the messages received, as national culture influences our thoughts, behaviours, and communication methods.” Research indicates that poor customer service costs UK businesses over £37 billion annually, as dissatisfied customers switch to competitors or discontinue services. According to PwC, 59% of UK consumers would stop doing business with a company after several bad experiences, and 17% would switch after just one poor experience. Retaining customers is significantly less expensive than acquiring new ones, so poor service has a direct, negative impact on long-term profitability and customer acquisition costs. The Global Gateway Programme supports businesses in East Lindsey by enhancing their capabilities and ultimately driving regional economic growth and fostering strong community ties. Through comprehensive training in areas such as e-commerce localization, multicultural marketing, and intercultural communication, the Global Gateway Programme empowers professionals to lead diverse teams, engage effectively with international clients, and navigate the complexities of global markets. East Lindsey Councillors Steve Kirk, portfolio holder for The Coastal Economy, and Adam Grist, portfolio holder for Market Towns and Rural Economy, said: “East Lindsey District Council is excited to support PAB Languages in delivering this interesting programme of courses for professionals through the UK Shared Prosperity Fund. “This programme will give those who access it the opportunity to grow and, in turn, aid many individuals to receive support, especially people who work in cross-cultural settings, enhancing their knowledge. “This has the intended aim of supporting those in employment to become confident in dealing with international trade and international markets, supporting East Lindsey’s drive to get our businesses exporting.” The training begins in December 2024.

The impact of Lincoln small firms has been highlighted by a visit Small Business Saturday’s national roadshow to the city.

Aiming to celebrate and support the nation’s small businesses, ‘The Tour’ undertook behind the scenes visits to small businesses in the Lincolnshire area, sharing their success secrets and future ambitions.

This included meeting Emma Haigh, who owns Jailhouse Frock, a 1940s/50s inspired vintage reproduction clothing shop.

Once again supported by BT, ‘The Tour’ is visiting more than 20 towns and cities across the UK during November, after starting up in Scotland earlier this month.

The roadshow is travelling across the UK for a month as part of the official countdown to Small Business Saturday, on 7th December. The campaign celebrates small business success, encouraging consumers to ‘shop local’ and to support businesses in their communities.

After its stop in Lincoln, Small Business Saturday’s roadshow will be travelling to Nottingham, Northampton, and Solihull, before wrapping up in London ahead of Small Business Saturday on 7 December.

Michelle Ovens, pictured above, Director of Small Business Saturday UK, said: “It was fantastic to visit Lincoln and hear the ambition and passion of its local small businesses

“Small businesses make an invaluable contribution to the local community here and across the whole of the UK, and it’s so important we all support them on Small Business Saturday and beyond.”

Half of the UK’s businesses now say they have been impacted by the conflict in the Middle East, almost double the proportion who said they were affected in late October last year. The main impacts cited by businesses are increased costs, shipping disruption and delays, and uncertainty on oil prices, and some firms report cancelling work in the Middle East because of the conflict. The findings, from the BCC’s Insights Unit, also show a rise in impact since February 2024, when firms were asked specifically about Red Sea disruption, and two-fifths (37%) were affected. Shipping container rates have fluctuated significantly since the current Middle East conflict began in October 2023. The cost of shipping a 40ft container from Shanghai to Rotterdam has risen from just over $1,000 then to just under $4,000 now, having peaked at over $8,000 in July. William Bain, Head of Trade Policy at the BCC, said: “Alongside the grim human impact of the ongoing conflict in the Middle East, the situation continues to have economic reverberations around the world. “The effect on businesses here in the UK has continued to ratchet up the longer the fighting has continued. “If the current situation persists, then it becomes more likely that the cost pressures will build further. “Certain sectors of the economy are obviously more exposed to this than others. But with the on-going war in Ukraine, wider geopolitical uncertainty, and the prospect of tariffs looming, the UK needs to think carefully about its trade strategy. “We need to seek out new deals with like-minded nations on critical raw materials, components and minerals to ensure their supply. And we must lean more heavily into the digital trade revolution to reduce costs and make exporting and importing simpler. “The use of economic diplomacy can also not be underestimated. The UK has a powerful brand and distinctive reputation around the world which we must harness to greater positive effect. “Overseas trade is vital to growing our economy. We must do everything we can to see businesses through these tough times, and then set a laser-sharp focus on expanding exports for the future.”