A survey carried out by the Recruitment & Employment Confederation and KPMG, has revealed a fall in the recruitment of temporary workers for the first time in 29 months. Demand for permanent and temporary workers fell, according to the report, which could be caused by the Eurozone crisis.
The survey, which is carried out every month, shows that permanent placements have fallen for the third time in succession, while temporary placements have shown the first drop in approximately two and a half years. Although the Eurozone crisis may be the cause of reluctance among employers to hire staff, the REC point out that the situation isn’t as bad as during the 2009 recession.
Chief executive of REC, Kevin Green said:
“While the jobs market is tough it remains resilient and is functioning well. There are clearly signs of decline but we are nowhere near the lows seen in 2009 when the market deteriorated at a drastically faster rate than we are seeing today.”
Green went on to say that employers were showing a degree of caution, starting 2012 slowly in terms of recruitment. A figure which is below 50 on the REC Index indicates a decline in demand for staff. The Index for permanent staff dipped to 48.5 in December, while the Index for temporary staff dipped slightly to 49.0. According to Green the drop in figures may indicate a drop in confidence in the economy, rather than a general drop in demand for services and goods.
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