Current News

January’s Report on Jobs, from the REC and KPMG, showed that the UK labour market continued to slow at the start of 2008.

Softer growth of demand for staff resulted in subdued rises in permanent placements and temp billings. Meanwhile, pay growth weakened further, in part reflecting easing skill shortages.

Helen Reynolds, Deputy Chief Executive of the REC comments:“This month’s Report on Jobs confirms that whilst people are still recruiting, the rate of growth in demand for jobs continues to slow. In such a delicate economic climate, now is not the time to start hampering job creation with new regulations on temporary work.

"A private members bill on temporary agency work is due to be debated in Parliament later in the month and has already attracted strong trade union support.

"The REC believes that the bill would simply limit temping job opportunities through added bureaucracy. It is vital that we preserve the flexibility which temporary work has brought our economy at this pivotal time for our successful jobs market.”  

Alan Nolan, Director at KPMG comments: “Whilst the rate of expansion continues to slow, January's data still show growth in both permanent and temporary placements. Despite predictions of redundancies and the financial market gloom, employers still remain optimistic.

"For example, many companies are planning to take on an increased number of graduates this year.Different sectors carry on being affected in different ways. Whilst workers in the construction industry remain in demand, investment banks are seeing a reduction in graduate salaries in a bid to level out the playing field.

"Employers will wait and see whether the uncertainty in the job and the financial markets will lead to further interest rate cuts.”

The Report on Jobs is available via annual subscription from the NTC. For more details, email charlotte.shand@ntceconomics.com.