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Report shows significant improvement in contractor jobs market
Posted Jan 7, 2010
The latest 'Report on Jobs' shows a significant improvement in both the permanent and contract jobs markets, with the sharpest growth figures since 2007.
The December 2009 report, published by REC in conjunction with KPMG shows a fifth consecutive month of higher staff appointments.
Recruitment consultants reported a further rise in vacancy levels during the month. Demand for permanent and temporary/contract staff increased at the strongest rates for 29 and 22 months respectively.
Average salaries for people placed in permanent jobs increased for the second month running in December. The rate of growth was solid and the fastest since June 2008. Hourly rates of pay for temporary/contract employees fell for a 15th successive month, but the latest drop was only marginal and the smallest in that period.
The availability of candidates to fill job vacancies continued to increase in December. However, the latest improvements in both permanent and temporary/contract staff availability were the least marked for one and a half years.
Jobs market recovery accelerating into 2010
Kevin Green, the REC's Chief Executive said:
"As we head into 2010, the recovery of the UK jobs market is accelerating. Employer confidence is increasing and vacancies are on the up - with the fastest growth in permanent jobs since July 2007. Temporary and contract placements also rose at the sharpest pace for thirty months which underlines the crucial role that flexible working models will play in helping job-seekers back into work."
Bernard Brown, Partner and Head of Business Services at KPMG said:
"The jobs market has continued its journey back to health and the data are certainly encouraging. We now need to see this improvement carried over into 2010 for the jobs recovery to be consolidated. However, the prospect of possibly extensive public sector job cuts in the second half of 2010 casts a long shadow over everything. The jobs market has been cushioned in recent years by continued public sector expansion. If this is put into reverse post-election, it could have a significant effect on employment figures."
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