Public sector cuts begin to impact jobs

GROWTH in recruitment activity demonstrated a marked slowdown in July, in the first tangible sign that the government’s public sector austerity cuts are starting to take their toll.

The month saw weaker rises in both permanent and temporary appointments, the KPMG and Recruitment and Employment Confederation (REC) Report on Jobs showed. The number of net new permanent appointments grew 24.4 per cent, compared to 28.9 per cent in June, while the number of job vacancies rose at their lowest level for eight months.

Bernard Brown, head of business services at KPMG, warned the report was “a sign of things to come as the public sector prepares for more spending cuts which are likely to impact the jobs market further”.

Engineering and construction was the most sought-after sector in terms of staff demand, a sign of a sustained recovery in manufacturing.