Recruitment activity shows slowdown

The recovery in the jobs market is slowing, with recruitment activity for permanent positions last month growing at its most sluggish rate since January. Hiring activity for temporary and contract positions also showed the weakest increase since last December.

Although recruitment in both categories is still in overall growth mode, according to the ‘Report on Jobs’ survey published by the Recruitment and Employment Federation (REC) and management consultancy KPMG, it is “only a matter of time” before the “impact of the government’s efficiency savings strategy” makes itself felt.

Bernard Brown, partner and head of business services at KPMG, said that, while the strategy was likely to leave hundreds of thousands of public sector joining the ranks of the employed, the “big challenge” would be to transfer as many of those jobs as possible over to the private sector through outsourcing and divestment. “Otherwise, the economy will be put under enormous pressure at all levels,” he added.