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Further increase in jobs market

15 February 2010

A new report on jobs reveals that that there has been a further increase in permanent and interim appointments in January.

According to figures released by the Recruitment and Employment Confederation (REC) and KPMG, permanent staff placements increased for the sixth month running.

Although weaker than December's peak, the rate of growth remained significant while temporary, contract and interim staff billings also rose strongly, with the pace of expansion only slightly below the previous month's two-and-a-half year high.

Higher staff appointments were underpinned by a further improvement in demand for staff. Vacancies increased for the fourth consecutive month, and at the fastest rate since July 2007. 

Kevin Green, Chief Executive of the REC - which represents many agencies that employ interim managers - said the labour market is out of intensive care but it is still in a fragile state.

While employers are hiring more now than at any other time in the last year, the recovery is tentative and must not be put at risk by taxes or regulatory changes.

Bernard Brown, Partner and Head of Business Services at KPMG warned that as confidence returns to the private sector, the starting gun for a public sector recession has only just been fired and its impact on the jobs market will be felt over the next 12 to 18 months

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