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The number of people finding new permanent jobs has increased in the South West at the start of 2020, with wages rising too – but talk of a “Boris bounce” may be premature because a staff shortage may be linked to lingering uncertainty, a new report says.

The latest KPMG and REC, º£½ÇÊÓƵ Report on Jobs: South of England, which includes the South West, found permanent placements increased for the first time in nearly a year, but temporary jobs declined.

Recruiters in the region recorded a renewed upturn in permanent staff appointments but temp billings fell back into contraction territory following a mild increase in December.

Starting pay for both permanent and short-term staff rose at softer rates during January. Notably, starting salary inflation eased to a three-and-a-half year low.

At the same time, the availability of workers continued to deteriorate sharply, with lower staff supply often linked to lingering economic uncertainty.

It was this low candidate availability which continued to place upward pressure on starting pay. Reports from panel members indicated that uncertainty over the political outlook had led people to become more reluctant to seek new roles.

 

Ian Brokenshire, senior partner for KPMG in Plymouth, said: “In December it was clear that the South West had some catching up to do, and finally it seems the region’s businesses have got the message.

“With geopolitical uncertainty easing significantly towards the end of last year, we are seeing some movement in the permanent jobs market with vacancies and placements rising at last. This is great news for job hunters.