Recruitment figures increase for three consecutive months
Date: November 10, 2009
The Recruitment and Employment Confederation (REC) and KPMG, independent business services provider, have announced in their latest report on jobs that the recruitment market has grown for both permanent and temporary staff, being October the third consecutive month. The index of temporary staff placements increased to 51.9 from 50.8, a 16 month high. This is confirmed by OrangeGenie for temporary and contract staff showing October 09 as a high point for new sign up’s to their umbrella company services for the past two years.
Kevin Green, REC Chief executive commented that based on this news the predicted unemployment rates by many economist would not hit 3 million next year after all and added “This highlights the benefits of the UK’s flexible labour market and a balanced attitude towards employment legislation in terms of keeping people in work”. Utilising contractors and freelancers during a time of uncertainty can allow a company to have a flexible work force, enabling them to meet demands whilst remaining competitive against full time staffing companies.
Bernard Brown, partner and head of business at KPMG added “The UK job market looks healthier today than at any time in the past two years which is, of course, encouraging news however, we are still to see the impact of the looming public-sector recession on the jobs market, which will play out over the first 12 months of a new parliamentarian team.”
The latest edition of Labour Market Outlook (LMO), from the Chartered Institute of Personnel and Developments (CIPD) also reveals that the number of UK firms planning to make staff redundant has fallen.
The LMO data was obtained from surveys to more than 700 employers, covering all sectors of the economy and suggest that although the job market is in a better condition that it was, there are signs of fragile recovery identified in reduced working hours and lower pay rises.
It appears that the job market is still weakened by the failing economy however flexible labour can provide part of the solution required for economic growth. With delays to the Agency workers Directive as outlined by OrangeGenie and delays to VAT implications for temporary staffing there is hope that the freelance market can remain buoyant whilst the permanent market is still in decline, however this depends to a large extent on the legislation which our failing Government, Europe and a bloated HMRC bless us with.
