Permanent job placements falling
The Recruitment and Employment Confederation (REC)/KPMG have released their May "Report on Jobs", which shows that the number of permanent job placements is falling. The report also showed that pay growth was constrained, but that candidate availability was improving.
ASDA to create 9,000 jobsThe REC/KPMG report's permanent placements index dropped to 48.6, down from 48.9 in April. The vacancies index had a larger drop from 53.0 to 50.8, the lowest in nearly five years.
The REC said that employers preferred flexible workforces in the face of uncertain business conditions and that pay growth was being constrained by slowing demand for staff.
Kevin Green, chief executive at REC, said, "The credit crunch is continuing to slow permanent job growth, however employers still need to resource. An increasing number of companies are using temps as a way to ride the storm. Every week, 1.3 million temporary workers are keeping business in the UK moving."
Alan Nolan, director at KPMG, said, "These latest figures confirm a trend we have seen emerging over the last couple of months. In the current economic slowdown employers continue to look towards the flexible labour market as a way to cut costs rather than taking on staff permanently.
"With city redundancies contributing to a growing pool of labour and increases in the cost of living forcing some families to find a second income, employers currently hold the upper hand in the job market."
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