REC warns government against job market complacency

2002

Although the report revealed that permanent recruitment rose at its fastest rate in nearly 18 months, it also indicated that overall the rate of rise across both the permanent and temporary sectors eased in June.

Chief executive of the Recruitment and Employment Confederation Tim Nicholson said: “Permanent recruitment is a good barometer for the economy at large and continues to grow at the fastest rate since March 2001.

"However, with the vacancy data signalling an easing in the rate of growth of demand for staff during the month, the recent recovery in the labour market should not be taken for granted by the government.”

He added: “Competition among agencies for temporary placements is high except for IT, where the lack of demand is a real concern for those employed in the sector.”

Head of human capital at Andersen Brett Walsh also warned against reading too much into the rise in permanent placements.

He said: “The pace of growth remains weak compared to that seen prior to last year’s slowdown.”

The slowdown was initiated last year by the foot and mouth disease and the global downturn in the telecoms sector. Many companies were forced to review staffing levels and freeze recruitment drives.

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