Job market is still on the up
RECRUITMENT firms continued to see rising demand for workers across all sectors last month, showing that the impact of the Budget spending squeeze has yet to filter through to the public sector job market.
Both permanent and temporary staff placements grew in June, according to a monthly job report published by accountancy firm KPMG, with engineering and construction recording the strongest level of demand.
However, the rate of growth has eased back, with the level of permanent staff placements now showing its slowest improvement since January, reflecting nervousness in the business world over the strength and sustainability of the economic recovery and fears over the impact of the chancellor’s fiscal tightening policies.
“It can now be only a matter of time before we will start to see the impact of the government’s efficiency savings strategy, which is likely to leave hundreds of thousands of public sector workers looking for employment,” said KPMG’s head of business services Bernard Brown. “The big challenge will be to transfer as many of these jobs as possible to the private sector through outsourcing and divestment, otherwise the economy will be put under enormous pressure at all levels.”
KPMG’s survey also reflected a boost for employees’ wallets, as both permanent salaries and temporary wage rates grew further in June. The rate of growth was equal to that reported in May.