Jobs recovery outlook weak as market slows in June

THE jobs market increased at its slowest pace for nearly two years in June and a quick recovery looks increasingly unlikely, a report has concluded.

The number of permanent staff recruited fell to its lowest level for 22 months amid public sector cutbacks, according to the Recruitment & Employment Confederation (REC).

There was also a fall in the number of vacancies advertised, which dropped to its lowest level for six months, suggesting recruitment would remain weak.

The findings will raise fears that the number of unemployed people, which stood at 2.4 million in June, could rise.

But the REC said recruitment levels have now risen for 23 months in a row and it was optimistic the private sector could make up for public sector job cuts.

Wages increased only marginally in the month, despite high inflation, reflecting the weak job market.

The report also warned of "real concerns" over the NHS, as a significant drop in the use of temporary and locum staff could lead to a lack of support for already overworked healthcare staff.

REC chief executive Kevin Green said: "Although there has been a deceleration in the rate of growth, the UK jobs market is resilient and we are not expecting a double dip in employment. Looking ahead, we are unlikely to see a dramatic upswing in employment until the middle of 2012. However, the slow and steady increase in private sector hiring should mean that workers leaving the public sector have possible job outlets."

Bernard Brown, a partner at KPMG, which helped write the report, said: "A quick job market recovery in the UK now looks increasingly uncertain".