Job market improving but ‘very fragile’
Research by KPMG and the Recruitment and Employment Confederation (REC) has revealed some encouraging news for the job market after the number of unfilled permanent and temporary jobs increased in September for the second consecutive month.
However, the report highlights that the job market is still “very fragile” as despite an increase during the month, growth remained “subdued” compared to pre-recession levels.
The REC/KPMG report said the rate of job losses “appear to have peaked” after the Office for National Statistics (ONS) suggested job losses “may well be moderating” in the latter half of 2009.
The report, which polled 400 companies, also found that the number of job vacancies fell in the month at the slowest rate for 16 months, suggesting that demand for staff was stabilising.
The index for permanent staff placements in September was 58,while the index for temporary staff placements came in at 55.1. Any level above 50 represents growth.
Commenting on the figures, Kevin Green, chief executive of the REC, said: “Employers have retained more staff during this recession than previously.”
“This labour hoarding means companies will be able to respond to increases in demand without hiring new employees.
“This could be bad news for the nearly one million young people under 24 currently without work,” he added.
Currently, unemployment in the UK stands at 2.47 million, according to ONS figures – the highest level since 1995.
Many economists still believe that unemployment could peak at three million in 2010.
However, the Centre for Economics and Business Research recently predicted that unemployment could reach 4 million – worse than the record high in the 1980s under Margaret Thatcher’s leadership.
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