REC survey reveals demand for new staff is strong
A report by the Recruitment and Employment Confederation (REC) and KPMG has revealed employment for both temporary and permanent workers rose during December.
The survey of 400 recruitment consultancies showed permanent staff vacancies rising at their fastest level in four months, while demand for temporary staff saw its biggest rise in six months.
However, the permanent staff placements index dipped to 54.9 last month from 55.2 in November, while the temporary staff index also dipped from 53.5 to 52.8 in December.
However, both indices remain over the crucial 50 level, which separates contraction from growth.
However, KPMG warns that as the Government’s tough austerity measures take hold, the future looks uncertain.
KPMG’s Bernard Brown comments: “First the impact of the government cutbacks in public sector spend and employment, which should start to bite over the coming months.
“Second the impact of the recent VAT increase, and whether this will affect UK consumer demand and job creation,” he added.
The latest figures from the Office for National Statistics (ONS) show UK unemployment rose in the three months to October.
The ONS said unemployment grew by 35,000 in the three month period to just over 2.5 million.
The latest figures takes the unemployment rate to 7.9% – for the first time in six months.
The austerity measures introduced by the Government will see thousands of public sector jobs go over the next four years and, as a result, many economists believe unemployment could reach 2.7 million.