Recruitment activity across the North fell remarkably sharply in November, marking the fastest slowdown for four months, according to the latest KPMG and REC UK Report on Jobs: North of England survey.
The survey recorded declines in both permanent staff appointments and temporary billings during the month. It also showed that temporary billings fell for the first time in three months, alongside continued weakness in pay growth and further reductions in job vacancies across the region.
The fall in permanent placements was described as rapid and the most pronounced since July. Temporary staff demand also weakened, reflecting broader economic pressures affecting hiring decisions. This trend contributed to a rise in candidate availability across the North as fewer roles were filled.
Michael Downes, Newcastle office senior partner at KPMG UK, said the figures pointed to caution among employers.
“November brought with it a continued slowdown in the North’s labour market, with permanent placements and temporary billings both falling at the fastest rate in four months. Hiring freezes and cautious decision-making in the run up to the Chancellor’s Autumn Budget kept activity subdued, as billings for short-term staff slipped for the first time since the summer.
“But, as businesses move through the final month of 2025, the data points to a genuine opportunity to plan ahead with more clarity in the New Year. Candidate availability is rising quickly, giving employers access to strong talent that may have been harder to secure earlier in the year. With starting salaries and temp pay pressures easing and businesses reviewing their plans after the Budget, decision-makers can move with momentum and consider strengthening their teams in a more favourable hiring environment.”
Neil Carberry, chief executive of the Recruitment and Employment Confederation, said uncertainty ahead of the Budget had notably affected hiring decisions.
“Pre-Budget nerves knocked temporary recruitment back just a little across the UK in November after a growing October, but the overall picture was still relatively benign by comparison to the last year. Recruiters in the North report firms were carrying out hiring freezes, with some decisions on hold. Anxiety about the Budget also explains why temp billings fell for the first time in three months in the North of England. With such a late Budget and the Christmas period just around the corner, the key now will be the decisions that employers make for their businesses this coming January.
“We can see signs of the market stabilising in recent months, but the North is lagging the broader UK improvement in pay rates for new jobs. To really get businesses firing, they need confidence. While the Budget was not the horror show of last year, there was little in it to fire the heart of firms. More recently, moves to change the Employment Rights Bill will have landed well, but there is much more to do to get the economy firing. If the government’s priority is growth, their report card at the end of 2025 reads ‘Must try harder’.”
The report highlights a continued North recruitment activity decline as employers defer decisions and navigate economic uncertainty.
