Twin Track Job Market Emerging

The picture of a ‘twin track’ job market in the UK emerges from the Recruitment and Employment Confederation’s and KPMG’s Report on Jobs for last month. 

In April there was a marked rise in demand from private sector employers for permanent staff and this was echoed by a strong and accelerated rise in the number permanent staff taken on.  In addition, permanent staff salaries increased at the fastest rate for nine months and temporary pay rose at the fastest rate for a year.

But there was weaker demand from public sector employers for temporary staff and more jobseekers registered with agencies during the month.   

Commenting on the findings, Bernard Brown, of KPMG said:

“The latest figures reveal a very mixed picture of the UK job market. In many areas of the private sector employers feel confident to hire again on a full time basis, though the picture is very different in the public sector where hiring freezes and cost cutting seems to be the order of the day. Indeed, private sector businesses with a dependency on the public sector are clearly on a knife edge, as they wait to understand how the unfolding government policy will impact them. The fundamental issue facing the UK’s ‘twin track’ job market is whether the private sector can create enough jobs to offset the expected job losses in the public sector.”

The Report on Jobs is based on a monthly survey of a panel of 400 UK recruitment and employment consultancies.



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