Recruitment rises in ‘fragile’ recovery (From Western Telegraph)

Recruitment rises in ‘fragile’ recovery

9:29am Thursday 8th October 2009 in Jobs

Permanent and temporary jobs have increased for the second month in a row, although the labour market is still ‘very fragile’, recruitment firms have reported.

Research among 400 companies showed bigger increases in job placements by recruiters in September than in August, although growth remained ‘subdued’ compared to the levels seen before the recession kicked in.

The Recruitment and Employment Confederation said job vacancies fell in September at the slowest rate for 16 months, showing that demand for staff had stabilised.

The number of permanent and temporary workers available for jobs rose last month, but at lower levels than earlier in the year, suggesting that the most intense phase of job cutting had passed, said the report.

Kevin Green, the confederation’s chief executive, said the study was good news for the jobs market.

He said: “However, the labour market is still very fragile and we are concerned that recovery from this recession might be jobs light. One of the reasons for this is that employers have retained more staff during this recession than previously.

“This labour hoarding means companies will be able to respond to increases in demand without hiring newemployees. This could be bad news for the nearly one million young people under 24 currently without work.

“It also illustrates that the government must not stifle any employment growth by introducing additional employment legislation. The agency workers directive for example must not be introduced until the last possible moment in December 2011.”

Bernard Brown, head of business services at KPMG, which helped with the research, said: “The latest report brings more encouraging news for the UK jobs market. After declining for 16 months in a row, the number of people placed in permanent jobs has risen for the second consecutive month.

“This provides further evidence that the bottom of the economic cycle has been reached.

“However, the prospect of a twin-track economy looms ever larger.While the private sector recovers, large-scale job losses in the public sector become ever more likely as the government finally tackles the huge budget deficit.”