Job scarcity blamed on Olympics

THE NUMBER of workers placed in permanent jobs has fallen for the second month in a row, suggesting recruitment decisions are being put on hold until after the Olympics.

A report by KPMG and the Recruitment and Employment Confederation (REC) said there was still a “high degree of uncertainty” among employers.

There were reductions in both permanent and short-term staff appointments during July, while recruitment consultants reported an increase in the availability of staff.

Bernard Brown of KPMG said: “Only a few weeks ago there was an audible sigh of relief across the UK’s workforce as official employment figures indicated signs of improvement.

“However, my concern is that any sigh of relief may be mistaken for a groan of exasperation, because the rate at which employers are recruiting has decreased for the second consecutive month, and this suggests that there is still a high degree of uncertainty.”

REC chief executive Kevin Green said: “The UK’s labour market deserves a gold medal for its incredible performance in the face of adversity so far this year. It has defied gravity as unemployment has fallen and jobs grew even in recession.”