By Daniel Hunter

The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs — published today (Wednesday) — provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.

Permanent staff placements increased in April, continuing the trend seen since the start of 2012. That said, the rate of growth was modest and the slowest since January. Higher placements were supported by a further solid increase in demand for staff.

Agencies’ billings from the employment of temporary/contract staff fell again in April. Although only slight, the rate of contraction was nevertheless the fastest since July 2009. The number of vacancies available to people seeking short-term work meanwhile increased, but at the weakest rate since September 2009.

Permanent staff availability down slightly; weaker rise in temp availability
April data pointed to a slight deterioration in the availability of candidates for permanent jobs, bringing an end to the previous 14-month sequence of growth. Temporary/contract staff availability continued to rise, albeit at the weakest rate for almost a year.

Permanent staff salaries continued to show a broadly flat trend in April, posting a fractional fall on the month. Hourly rates of pay for temporary/contract staff were up modestly

“This month’s figures show growth in permanent jobs but at the slowest level since January," Kevin Green, Chief Executive of the Recruitment & Employment Confederation, said.

"This highlights the fragile nature of the UK jobs market at present. Employer and consumer confidence are increasing and we anticipate more private sector jobs being created in the second half of the year. Temporary staffing is declining as employers take on more permanent staff and come to terms with the Agency Workers Regulations, however, temps will continue to be a valuable resource for many businesses.

“During 2011, employers made do with the staff they had, trying to exploit any additional capacity in their existing workforce. Having maximised the growth they could achieve in this way, confidence has grown sufficiently for organisations to make the positive decision to take on more staff.

"This growth is fragile though, and reports of a double dip recession and crises in the Eurozone could have a negative impact on that confidence.”

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