Recruitment levels of permanent staff have slumped to their lowest in five years, according to a joint report published by the Recruitment and Employment Confederation (REC) and KPMG.
With business managers increasingly plumping for temporary workers over their permanent counterparts, levels for the latter have reached their lowest since May 2003. One possible reason for this may well be the recent credit crunch, causing employers to favour the flexibility a short-term work force can offer within an ever-uncertain economic climate.
KPMG Director Alan Nolan comments: "The good news is that although pay is still on the increase, the rate of growth has substantially slowed down. This will be a welcome message for the monetary policy committee who were worried that higher food and energy prices will push up wage demands."
But there does remain significant and substantial demand for permanent workers within both the social care and construction industries, claims REC Chief Executive Helen Reynolds, who added that the government’s new points-based immigration system needs to account for this. Under the introductory system, points awarded to those migrant workers will depend on their qualifications, age, skills and experience.
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