REC's Report on Jobs showing signs of recovery

The August Report on Jobs published  by the Recruitmenet & Employment Confederation (REC) and KPMG has shows there are signs of recovery now beginning to appear in the labour market. Kevin Green, the REC's Chief Executive, told the BBC "It seems that employers are becoming more confident in their hiring decisions," .

Key points of the Report are:

• Marginal increases in both permanent and temporary staff appointments.

• Candidate availability rose at weaker pace.

• Permanent and temporary staff pay fell at slower rates.

This was the first growth of permanent appointments for 17 months and the first increase in temp billings since July 2008. The rate of contraction of demand for staff eased further in August. The latest drop in overall vacancies was the weakest in just over a year.

Recruitment consultants reported another month of declining pay rates in August. However, the latest reductions in both permanent salaries and temporary/contract staff hourly wages were the slowest in ten months.

Kevin Green, says: “For the first time in 17 months, this month's report shows signs that the UK jobs market is improving. It seems that employers are becoming more confident in their hiring decisions with an increase in permanent recruitment and growth in temporary placements for the first time in over a year."

“The stabilisation in the jobs environment must not be put at risk by the introduction of ill-designed regulation like the Agency Workers Directive. This legislation needs careful consideration to avoid putting jobs at risk and must not be introduced until the last possible moment in 2011. Unemployment will continue into 2010 so we call on the Government, employers and recruitment businesses to work more effectively together to build on these green shoots and safeguard the recovery of the jobs market.”

The Report on Jobs provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.