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Demand for staff strongest since July 2007 as recruitment recovery continues

Published on Feb 5, 2010 |

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The latest REC/KPMG Report on Jobs shows that the demand for staff grew at the strongest pace recorded since July 2007, with contract billings continuing to rise significantly during January,

The report, which provides the most comprehensive guide to the UK labour market, uses original data provided by recruitment companies. Following a strong recovery in December 2009, permanent staff placements continued to rise during January, although at a slower pace.

The number of contractor / temporary billings also rose strongly - only marginally below the rate recorded in December's 30 month high. Contract rates also rose slightly over the month, for the first time since September 2008.

As the demand for staff continued to rise during the month, the availablity of staff for perm and contract work also rose, although at a lower pace than seen at the height of the economic downturn in late 2008 and early 2009.

Jobs market on tentative recovery back to health

Kevin Green, Chief Executive of the Recruitment & Employment Confederation, commented on the data:

"The growth in people getting permanent jobs eased in January but still remained positive overall. The number of vacancies reported by recruitment businesses also accelerated at the sharpest rate since July 2007, suggesting that we are now on the long road to recovery.

"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 said:

"The UK jobs market is continuing its journey back to health. Placements of permanent and temporary jobs have been rising again in January although at a slower pace than a month before, a reminder that the road to recovery will be bumpy. As confidence has returned 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."