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UK - Talking the jobs market down is unhelpful, says REC

29 December 2011

Kevin Green, Chief Executive of the Recruitment & Employment Confederation (REC), has commented on yesterday's forecast by the Chartered Institute of Personnel and Development (CIPD) that the jobs market in 2012 will continue to  deteriorate.
Providing a recruitment industry perspective on the jobs outlook, Green said "the labour market will remain fragile for the first part of 2012. However, it is important that we do not systematically talk the jobs market down, especially as employer confidence is the principal driver for job creation."
"The engine room for new jobs will be small businesses. Most of these do not have HR or personnel departments and are perhaps not reflected in the CIPD's assessment. Our own data shows that, although employers are currently cautious about permanent hiring, a significant number will consider bringing in new staff over the coming year. One priority in 2012 must be to address the current skills mismatch, which means that many employers and recruiters are actually reporting a shortage of suitable candidates."

"In addition, the UK's temporary and contract work market remains strong and continues to provide a crucial outlet for business and for workers. The REC/KPMG Report on Jobs shows that monthly temporary billings have continued to increase over the last year and the forward-looking REC Jobs-Outlook shows that over 80% of employers are planning to increase or maintain their temporary staffing levels over the next 12 months."
"Our own forecast is that unemployment will peak at around  2.75 million and that there will continue to be significant demand for staff, especially at the higher end of the jobs market. By the end of 2012 the private sector should be in a position to absorb ongoing public sector cuts."
"An early and effective end to the sovereign debt crisis in Europe would restore much needed confidence, encourage banks to lend and businesses to invest. This in turn would help to kick-start the UK's job creation machine and ensure a brighter year for our jobs market."

To read the CIPD's forecast please click here


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