UK employment recovery could soon be at an end

THE RECOVERY in UK job prospects could be running out of steam if the trend seen in August continues, according to a report out today.

The Recruitment and Employment Confederation (REC) and KPMG said the rise in vacancies brought by the economic recovery slowed through August.

Pay levels are also suffering, with last month’s increases being the lowest for 22 months – even as inflation threatens to hit five per cent.

“Although the jobs market has held up relatively well, it remains in the summer doldrums and, worryingly, there seem to be early signs of trends similar to those of 2008,” said KPMG’s head of business services Bernard Brown.

“Employers continue to take a cautious approach to hiring decisions amid an uncertain economic climate. Much will depend on macro-economic factors and their effect on overall confidence.”