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Rapid weakening of job market continued in November, Report on Jobs reveals.
The Report, published by the REC and KPMG, revealed that permanent placements declined for an eighth consecutive month with the rate of contraction accelerating to a new survey record. Similarly, temporary staff billings fell at the sharpest rate in the series history.
Anecdotal evidence suggested that the deteriorating economic climate and ongoing credit squeeze had resulted in many companies placing recruitment programmes on hold.
The November data pointed to a further marked drop in vacancy levels. Demand for both permanent and temporary staff fell at the fastest rates recorded by the survey to date, with only the Nursing/Medical/Care sector avoiding the downturn.Reflective of recent redundancies and reduced job opportunities, candidate availability continued to surge in November.
Series-record rises in both permanent and temporary staff availability were recorded.
Kevin Green, the REC's Chief Executive, says: "These figures confirm that the jobs market has hit the wall. While public sector, contracting and interim are faring slightly better, it’s now clear the Government must not remove the VAT concession on temporary work planned for April as this will destroy jobs when we can least afford it.”
Mike Stevens, KPMG Partner and Head of Business Services comments: "This latest survey leaves no doubt that the UK jobs market is now heading downhill at breakneck speed. The drop in permanent and temporary placements is far steeper and deeper than it has ever been in the survey's 11 year history.
“Employers in almost all sectors have drastically cut recruitment plans and are shedding contract and temporary staff as fast as they can. These people provided flexibility since current employment legislation means it will take some time for solvent businesses to make large numbers of permanent staff redundant.
The Report's results have been so dramatic - in terms of what is currently happening in the economic downtown, that Kevin Green was interviewed live on BBC News 24 and the FT has also featured the story. Other press mentions have been forthcoming in the Times, Independent and the Daily Mail.
The Report on Jobs provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.
Copies of the report are available on annual subscription from Markit. For subscription details, please contact: economics@markit.com.
