Economic worries take their toll on June jobs market
By: Dave Robbins
11 July 2012
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Uncertainty caused by Eurozone worries, the sluggish UK economy and additional holidays over the Jubilee weekend are all cited as reasons for the first fall in permanent placements for six months.
That’s what the June KPMG/REC/Markit ‘Report on Jobs’ reveals. Meanwhile temporary/contract billings were down for the seventh month running and declined at the quickest rate since July 2009.
However, unlike the weather, June wasn’t all bad news. Regionally, the Midlands recorded growth in temporary billings during the month. As for permanent placements, the South bucked the trend by also recording an increase.
According to the Report, if you’re looking for permanent work, employees in IT & Computing and Engineers/Construction workers were most in demand. As for temps, nurses/medical and care workers were in short supply.
Of course, uncertainty can be good news for suppliers of temporary labour. Lack of confidence makes employers less willing to take on permanent staff, even when business starts to pick-up. Temporary labour provides them with a more flexible supply that can be easily turned on and off as required.
Recruitment & Employment Confederation (REC) Chief Executive Kevin Green said: “The UK labour market has been remarkably resilient throughout the downturn and the slow economic recovery. However employer confidence is fragile and it’s not surprising that, under the weight of the eurozone crisis and other bad news, placements fell in June.”