A new survey reports that recruitment consultancies experienced significant increases in the demand for temporary and contract staff at the end of 2009, with the rise in vacancy levels the highest for 22 months.
The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs also indicated a fifth consecutive month of rises in staff appointments, with the growth of permanent placements accelerating to the sharpest since July 2007.
The survey, which draws on data provided by recruitment consultancies, showed a further rise in permanent salaries. The rate of growth was solid and the fastest since June 2008. Hourly rates of pay for temporary/contract employees fell for a fifteenth successive month, but the latest drop was only marginal and the smallest in that period.
However, amongst all the encouraging news, a cautionary note was sounded by Bernard Brown, Partner and Head of Business Services at KPMG: “We now need to see this improvement carried over into 2010 for the jobs recovery to be consolidated. However, the prospect of possibly extensive public sector job cuts in the second half of 2010 casts a long shadow over everything. The jobs market has been cushioned in recent years by continued public sector expansion. If this is put into reverse post-election, it could have a significant effect on employment figures.”
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