The latest KPMG and REC, UK Report on Jobs: North of England survey revealed further decreases in both permanent placements and temp billings in May. The decline in the former gained momentum, while the contraction in the latter slowed noticeably from April. Recruiters meanwhile recorded much softer falls in vacancies, and candidate numbers rose at a softer pace (albeit still sharply overall). At the same time, starting salaries and pay for short-term staff both rose at a stronger rate than in April. 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. Decline in permanent placements quickens in May Recruiters in the North of England continued to signal a decrease in the number of people placed into permanent roles in May, stretching the current period of reduction to nearly two years. Panellists noted lower demand for staff, in part due to restructuring, and a lack of suitably skilled candidates as reasons behind the latest reduction. The rate at which placements fell quickened from April and was marked overall. It was, however, noticeably softer than those seen through the opening quarter of the year and also slightly weaker than the UK average. May survey data signalled a further decrease in billings received from the employment of temporary workers in the North of England. Anecdotal evidence indicated that firms were cautious in their hiring decisions as they looked to control costs. The respective seasonally adjusted index has now posted in contraction territory for seven consecutive months. Though solid, the rate of reduction was the slowest seen over this period. The downturn in billings seen across the North of England was similar to that seen across the UK as a whole. Latest data signalled a fall in the number of permanent job openings, stretching the current trend of contraction to seven months. The rate of decline was noticeably softer than that seen in April, and the slowest over the aforementioned period. Temp vacancies fell for the seventh month in a row in May. That said, the rate of decline was the weakest seen over this period and only modest. The North of England recorded softer falls in demand for both permanent and short-term labour than those seen on average across the UK. Further substantial rise in permanent staff supply As has been the case since the start of 2024, permanent candidate numbers in the North of England rose in May. The uplift was predominantly due to companies restructuring and increased redundancies, panellists reported. The rate of expansion was substantial, but the softest in three months. The North of England also saw the quickest rise in permanent labour supply of all four monitored English regions for the third month running. The seasonally adjusted Temporary Staff Availability Index posted above the 50.0 mark in May, signalling an increase in the supply of short-term staff across the North of England. The rate of expansion slowed to the weakest in nine months, but remained marked overall. Survey respondents often linked the latest increase in candidates to job losses and a slowdown in hiring activity. Of the four English regions monitored by the survey, the North of England saw the slowest rise in temporary staff supply. Starting salaries rise at quickest rate in 2025 so far Salaries awarded to new permanent joiners increased for a second straight month in May. The increase reflected greater competition for skilled staff and attempts to attract sought-after candidates, recruiters noted. The rate of salary inflation was the strongest in the year-to-date and solid overall. However, steeper increases in starting salaries were recorded in London and the Midlands. As a result, the upturn in the North of England was softer than the UK average. Average hourly rates of pay for short-term staff in the North of England rose again in May, thereby extending the current sequence of wage growth to one-and-a-half years. The rate of inflation was sharp and the strongest in nearly a year. Qualitative evidence highlighted that employers had increased pay due to recent and stronger than average rises in the National Minimum and Living Wage rates. The North of England recorded the most pronounced upturn in temp pay of all four monitored English regions.  Commenting on the latest survey results, Phil Murden, Leeds Office Senior Partner at KPMG UK, said: “It’s clear that the North’s labour market remains under strain, with permanent placements continuing to fall during May. At the same time, there are signs that the downturn is slowing, with the rate of decline easing compared to the first quarter of the year. “While temporary hiring remains subdued, signs of optimism are emerging. The pace of decline in temporary billings has slowed to the weakest in seven months. This shift points to a more measured approach from employers, who are managing cost pressures but still recognising the need for flexibility in workforce planning. “Perhaps most encouraging for job seekers, pay growth is gaining momentum with starting salaries for permanent roles rising at the strongest pace so far in 2025. This reflects continued demand for key skills and a more competitive market for talent, particularly as restructuring drives more candidates into the labour pool.” Neil Carberry, REC Chief Executive, said: “More encouraging signs for the UK in temp billings, vacancies, and stabilising private sector demand offer a measure of optimism as we head into the second half of the year. In the North the decline in permanent billings was noticeably softer than those seen through the opening quarter of the year and the fall in temp billings was the slowest seen for seven months. “The big test now is whether the Spending Review convinces more employers to dance at the party by turning intent on hiring and investing into action. The Spending Review delivered a big hit in terms of eye-catching spending on technology and energy, but the lack of announcements on workforce matters is badly out of step with its desire to build a deep pool of talent. “With the Industrial Strategy imminent, businesses are looking for more than talk of renewal, they want a clear plan for an economic revival. One that acknowledges the central role of good workforce policy – beyond just employment rights. That means putting workforce matters at the heart of the agenda, not treating it as a compliance issue.”

Nestlé has launched a formal consultation process with staff at its York manufacturing facility as part of wider cost-efficiency measures across UK operations.

The company is reviewing production needs in response to declining sales volumes, which it attributes to the continued rise in global cocoa prices. As part of the operational adjustments, Nestlé expects to scale back KitKat production in the short term.

Up to 66 jobs are understood to be at risk across the York site and its sister factory in Girvan, Scotland. While no final decisions have been made, the consultation period will determine the extent of redundancies required to align output with current market demand.

Nestlé has stated its intention to engage with employees throughout the process and to ensure all proposed changes support the long-term efficiency and competitiveness of its UK manufacturing operations.