Demand for permanent staff slowed in North but temporary workers rose

Demand for permanent staff in the North is at its slowest in a year and a half, a survey of recruitment and employment consultants has found.

There was still a strong demand for permanent staff in the North of England but it remained below the UK average in December.

The opposite was the case for temporary vacancies which rose at a faster pace during the month, with the North registering above the UK-wide trend.

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Chris Hearld, northern chairman and office senior partner at KPMG in Leeds, said: “It was a December of two halves for the Northern jobs market. Growth in permanent roles weakened and lagged the rest of the UK, while festive demand triggered a dramatic upswing in temporary roles as organisations searched for help in an effort to fulfil customer orders.

“With potential festive anomalies behind us, the next couple of months should indicate whether northern businesses have made recruitment resolutions that stand to benefit the economy.”

The Report on Jobs by Markit, supported by KPMG and the Recruitment and Employment Confederation (REC) also found that both permanent and temporary workers saw a growth in salary. Temp pay grew in the North for the twenty-eighth month running in December.

Kevin Green, CEO of REC, said the job market continued to perform strongly and that economic growth for 2015 looks sustainable.

“However, the concern now is that political uncertainty could spook the market as we approach a general election,” he added.