–KPMG/REC: UK Aug Permanent Placements 48.4 vs 47.3 In July
–KPMG/REC: UK Aug Temporary Placements 51.0 vs 48.8 in July
–Temp Placements See First Rise In 9 Months

LONDON (MNI) – The pace of decline in UK permanent placements eased
in August while temporary placements showed the first rise in 9 months,
according to the latest KPMG/REC labour market survey.

The survey also points to rising job vacancies and suggests that
private sector recruitment remains surprisingly robust, offsetting the
drop in public sector employment due to the government’s fiscal
measures.

The permanent staff placements index stood at 48.4 in August
compared with 47.3 in July (50 marking the boundary between expansion
and contraction in the survey). Temporary placements rose to 51.0 from
48.8 in July.

Recruitment and Employment Confederation chief executive Kevin
Green says: “This month’s data shows yet again the remarkable level of
resilience within the UK labour market as it continues to outperform
predictions.

Green explained the rise in temporary placements as down to
employers’ search for flexibility at a time when they are not feeling
confident enough about the economic outlook to recruit permanent
workers:

“Recruiters tell us the first rise in the placement of temp workers
in nine months is because employers are calling on that flexibility
offered by agency staff as a way to grow to meet recent increases in
demand, like that seen last month in the service sector”.

The vacancies index rose to 52.9 from 52.8 in July and availability
of candidates continued to ease, but REC’s Green said that the labour
market is ‘not out of the woods yet’.

Salaries and pay rates for both temporary and permanent workers
remained weak during the month.

The survey comes ahead of next week’s Labour Market report from the
NS. Bank of England officials have been scratching their heads in recent
months over the so-called ‘productivity puzzle’ – signs of strength in
the labour market while output falls.

–London newsroom: 4420 7862 7492; email dthomas@marketnews.com

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