Slowdown in job creation may mean bleak times ahead

By ALAN JONES
Published on 09/07/2012 00:00

THE numbers of permanent and temporary jobs across the UK have both fallen in recent weeks, giving a “bleak” outlook on the employment front, according to two studies.

The Recruitment and Employment Confederation (REC) and KPMG said permanent placements fell for the first time in six months in June and temporary appointments were down for the seventh month in a row. The report also showed higher levels of staff availability.

A separate report by recruitment firm Astbury Marsden showed a 32 per cent fall in new jobs in the City of London between May and June. Astbury Martin said fewer than 3,000 new jobs were created in the City last month compared with more than 4,300 in May and 5,400 last June.

REC chief executive Kevin Green said: “The sharp drop in the number of people placed into work last month is really disappointing. A decrease in hiring activity means we could see a period of increased unemployment, especially as a new wave of school leavers and graduates will be entering the labour market over the summer.”