Employment market showing 'signs of recovery'
Employment market showing 'signs of recovery'
Wednesday 8th July 2009
A jobs market report out today has indicated employment conditions may be starting to show signs of recovery.Permanent placements fell at their slowest rate for over a year in June, according to the Recruitment and Employment Confederation (REC) and KPMG report on jobs out today.
While today's report showed market conditions continued to worsen for the month, the decline was at a much slower pace than at the beginning of the year.
The report discovered permanent placements saw their weakest drop for 13 months, with temporary/contract staff billings declining at the slowest rate since last September.
Kevin Green, chief executive of the REC, said: "The UK jobs market shows signs of life.
"June had the best performance in the placement of permanent staff for a year. Whilst the public sector has continued to recruit, it is now critical that demand returns to the private sector to negate the potential public expenditure constraints that we are likely to see over the next few years which could in turn hinder a full recovery of the UK jobs market.
"An increasing number of recruiters are reporting a rise in the demand for temporary and contract staff. Flexible working options will provide a crucial way back into work for a number of jobseekers which is why we must ensure that the new regulations covering agency work do not limit these opportunities."
However, the data also pointed to a further reduction in employee pay, reflecting weak demand for staff.
"Although the rate of decline for permanent and temporary placements continues to slow, it is probably too early to talk about a recovery in the UK jobs market," Mike Stevens, partner and head of business services at KPMG, warned.
"One reason why we see continued improvements may be that more UK employers are asking staff to work reduced hours for lower pay in return for less aggressive redundancy plans."
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