Recruitment continued to be affected by ongoing candidate shortages, although there were further signs of the downturn in labour supply easing in January.

The number of permanent staff placements fell for the fourth consecutive month, although temporary billings increased modestly.

Following the seasonally adjusted index, permanent placements fell below the neutral 50.0 threshold, standing at 46.8 in January nationally.

Meanwhile, overall candidate numbers contracted further at the start of the year. Though solid, the rate of contraction was the softest seen since March 2021 and much slower than the average over 2022 as a whole.