LONDON (MNI) – The UK jobs market continued to grow in June, but at
the slowest rate seen in five months, according to the latest survey of
the UK labour market by KPMG/REC and compiled by Markit.

Both the temporary and permanent job indices remained comfortably
above the 50 level in June, marking the eleventh consecutive monthly
expansion in both segments of the market. A reading above 50 signals an
expansion, while a number below 50 represents a contraction.

The June permanent placements index came in at 60.7, down from 61.3
in May, marking its slowest growth in five months. The temporary
placements index slipped to 57.0 in June from 59.2 in May.

The KMPG/REC surveys have tended to paint a brighter picture of the
jobs market than the official data. The official data have given mixed
signals about the UK labour market, with the number of people claiming
jobless benefits falling, while employment levels are near 13-1/2 year
lows in the three months to April.

The KPMG/REC survey showed that pay growth was unchanged at 53.9,
while the temporary/contract pay index was practically steady at 52.4 in
June from 52.5 in May.

Staff availability is expanding, with the permanent staff
availability index climbing to 50.3 in June from 49.7 in May and the
temporary staff availability index rising to 54.5 from 53.5 in May.

However, job vacancies also continued to grow. The June job
vacancies index fell to 59.6 from 60.3 in May.

Bernard Brown, head of Business Services at KPMG, said that the
proposed public sector cuts had not yet had an impact on the UK jobs
market, but warned it was only ‘a matter of time’.

“However, 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. 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.”

–William Wilkes is a reporter with Need To Know News
(william.wilkes@ntkn.com)

–London newsroom: 4420 7862 7491; email: ukeditorial@marketnews.com

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