UK Jobs Market on "Journey Back to Health"
The latest 'Report on Jobs' from KPMG and the Recruitment and Employment Confederation shows further improvements in the UK jobs market. But KPMG Head of Business Services Bernard Brown is warning that the "road to recovery will be bumpy".
"The UK jobs market is continuing its journey back to health. Placements of permanent and temporary jobs have been rising again in January although at a slower pace than a month before, a reminder that the road to recovery will be bumpy.""As confidence has returned to the private sector the starting gun for a public sector recession has only just been fired and its impact on the jobs market will be felt over the next 12 to 18 months."
The report showed;
Growth of staff appointments remained strong despite easing...
Permanent staff placements increased for the sixth month running during January. Although weaker than December's peak, the rate of growth remained marked. Temporary/contract staff billings also rose strongly, with the pace of expansion only slightly below the previous month's two-and-a-half year high.
...supported by faster expansion of vacancies
Higher staff appointments were underpinned by a further improvement in demand for staff. Vacancies increased for the fourth consecutive month, and at the fastest rate since July 2007.
Weaker improvement in candidate availability
The availability of staff to fill both permanent and temporary/contract vacancies continued to rise in January. However, in both cases the rates of growth eased further from the elevated levels seen in late 2008 and early 2009.
Pay growth remained lacklustre
Although permanent staff salaries continued to increase in January, the rate of growth eased slightly and remained weak by the survey's historical standards. Temporary/contract staff pay rose for the first time since September 2008, albeit only marginally.
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