Startup Revolution

There's good news for the job market with more employers looking to hire.According to the latest REC/KPMG Report on Jobs a modest rise in permanent staff appointments was witnessed for the first time in four months during January, although agencies’ temporary/contract staff billings fell slightly for the second month running. It was the first time that the index had risen above 50 since September, indicating growth instead of contraction.

Kevin Green, the REC's  Chief Executive,  says, “This month’s Report on Jobs highlights that there are glimmers of hope for the UK jobs market with permanent placements increasing for the first time in four months. This is the first positive indicator for some time that employers are looking to hire staff despite the ongoing weakness of the economy. It is particularly encouraging that six out of eight sectors surveyed show growth in demand, including engineering, IT and office professionals."

"The Report on Jobs also follows better than expected services data from the Purchasing Managers’ Index last Friday, which suggests that confidence is growing amongst consumers as well as businesses. A major challenge in the jobs market is the disconnect between what employers are looking for and what jobseekers can offer. Better careers guidance is part of the solution, as is increased use of apprenticeships to get young people into employment with vocational skills development.”

Bernard Brown, Partner and Head of Business Services at KPMG, commented, “Given the continued impasse surrounding the Eurozone and the knock on effect this has on business confidence, it is a welcome surprise to see a modest increase in the number of permanent job placements across the UK.  Perhaps employers are beginning to accept that they need to have the right people in place to kick start the economy? Sadly, though, the number of people hoping to fill these vacancies continues to rise and with unemployment benefit claimants up for the tenth month in succession, the competition to be the right candidate in the right place is tougher than ever."

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