Jobs survey shows ‘modest’ growth in permanent appointments

The survey of recruitment and employment consultants said that the rate of growth was “modest” and compared with a slight reduction in the number of people appointed to permanent jobs at the UK level.

Chris Hearld, office senior Partner at KPMG in Leeds, said: “The news that demand for permanent staff in the North is finally on the increase after a three-month dip can only be viewed as encouraging, particularly in the context of the slight reduction in demand nationally. However, the modest nature of this growth would suggest that it’s far too soon to be talking about any signs of ‘green shoots’.

“Clearly, any sustainable improvement in employment remains dependent on the growth of the economy as a whole. One would hope that the Government’s plans to increase lending to businesses will help fuel job creation, but while confidence in the region remains fragile, a complete jobs recovery is by no means guaranteed.”

Temporary staff appointments increased in the North during September, according to KPMG’s report. The rate of expansion was faster than in August, but “still only marginal”, it said. The UK as a whole also recorded an expansion in temporary staff placements, and at a slightly faster rate than that seen in the North.

Recruitment and Employment Confederation chief executive Kevin Green said: “This month’s figures show that the temporary labour market has bouncebackability.

“The resilience of the UK labour market in the face of what official figures class as a double dip recession continues to be remarkable. This increase in the use of temps for the second month in a row could be a sign of optimism among employers, and that they are gearing up for future growth.”

Meanwhile, according to the latest Lloyds survey, the majority of England’s regions reported expanded business activity last month, albeit at a slower pace. The Lloyds TSB Regional Purchasing Managers’ Index dropped to 51.9 in September from 52.7 in August as stagnation in the North East and a decline in the South West dragged on the wider reading.

September’s output data showed that the East of England rose to the top of the English regional performance table – a position it last held in mid-2010.

The North West and Yorkshire and Humber also posted notably stronger rises in business activity than the overall trend for the English regions. The South West was the only region to register a drop in output, which was the second in the past three months.

Meanwhile, the North East saw a stagnation in business activity during September, which ended a six-month period of falling output across the region.