North of England recruitment slows but pay starts to rise

The latest KPMG & REC UK Report on Jobs: North of England, compiled by S&P Global, shows that hiring in the North remained weak at the end of 2025.

Both permanent and temporary job placements fell, although the rate of decline slowed slightly, suggesting the situation isn’t worsening as fast as before.

Despite fewer jobs being created, pay for new roles is rising again. Starting salaries for permanent and temporary staff increased in December, reflecting that employers still need skilled workers and are willing to offer higher wages to attract them.

Recruitment experts describe the picture as mixed. While hiring remains cautious due to uncertainty and costs, the return of pay growth and signs that redundancies may be easing provide a small positive signal for businesses planning ahead in 2026.

Read the full report.

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