Job creation up but skills are in short supply

Chris Papadopoullos
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JOB CREATION remained strong last month, but a skills shortage could be looming on the horizon.

A report released today by consultancy giant KPMG and the Recruitment and Employment Confederation (Rec) showed that permanent staff placements rose for the 25th consecutive month in October.

Meanwhile, another KPMG report warned that a huge skills shortage in the construction sector could hinder infrastructure plans – especially in London and the south east.

One reason for the skills shortage was the lack of investment in training during the recession. How­ever, job creation is rising and not just in London – the fastest increase was recorded in the Midlands.

Industry-wise, engineering remained top in terms of demand for permanent staff during the month, marginally ahead of IT and computing. “We can’t be complacent. The government needs to help business take on staff by doing all it can to protect employers from shocks and uncertainty. More specific advice on how far claims for holiday pay can be backdated and ensuring businesses are not subjected to a barrage of new cases in light of this week’s judgment would be a good start,” said Rec boss Kevin Green.