04.02.09

UK Demand For Staff Hits 12 Year Low.

According to the latest Report on Jobs from the Recruitment & Employment Confederation (REC) and KPMG, demand for permanent staff fell in January at the fastest pace since the survey was first published in 1997. Demand for temporary staff also dropped at the fastest rate since the survey began.

The number of people placed in permanent jobs via recruitment agencies and consultants last month decreased for the 10th month in a row and temporary placements were also down.

As a consequence of the surge in the number of people looking for work, average salaries for new recruits in permanent and temporary jobs continued to fall.

The only sector to buck the fall in vacancies was the nursing, medical and care sector.

Mike Stevens, from KPMG commented:

“Yet another month of desperate news on the UK employment front, although the rate of decline in permanent placements has slowed. Most employers are now looking at ways to cut cost to mitigate falling sales revenues. High on the list of costs, for what has largely become a service economy, is wages.”

He said most employers were considering redundancy plans. And added:

“The best employers are already looking at more imaginative ideas, for example by inviting staff to volunteer to reduce pay in return for a shorter working week during the recession.” 

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