‘Bleak news’ on full-time jobs front

The survey of recruitment and employment consultants in the North revealed that the pace of contraction was “modest”, and slowed from June.

The fall in placements was slightly slower than the UK average.

Chris Hearld, KPMG’s Leeds office senior partner, described the findings as “bleak news”.

But he added: “That said, it’s likely that July’s negative data is due in part to the traditionally quiet summer period for job hunters, perhaps exaggerated by an ‘Olympic effect’.

“The real story of recovery will probably only start to emerge in the autumn.”

Meanwhile, temporary staff appointments also decreased in the North during July, extending the current period of contraction to three months.

The report said that the rate of decline was “solid”, but eased from June, and that the reduction in temporary appointments in the region was faster than seen at the UK level.

Demand for permanent workers in the North increased slightly during July.

However, the pace of increase was the slowest in 21 months and remained below the UK average. Meanwhile, demand for temporary workers rose at a “solid pace”, the report said.

Permanent staff salaries rose slightly in the North of England during July, while temporary staff pay rates fell for the third successive month in July, the survey reported.

Engineering, computing and healthcare defied the decline.