December REC/KPMG Report on Jobs Conceals Hope in the Gloom

PAYE umbrella contractors pondering what the economic runes may imply for 2012 may feel a little gloomier after reading the latest REC/KPMG Report on Jobs. However, beneath the slate grey clouds of December’s figures, a silver (or at least polished aluminium) lining may lurk.

The last month saw a drop in permanent appointments and a marked rise in ‘candidate availability’, recruiters reported – a signal that the number of unemployed job seekers has grown. For the first time in two and a half years, the number of temporary billings declined slightly.

Before contractors working through umbrella companies head full pelt for the edge of lemmings cliff, they would do well to bear in mind other facts which these ‘snapshot’ figures conceal. The REC’s Chief Executive, Kevin Green, said:

“Employers are still hiring and using temps in large numbers; however, they are starting the year on a cautious note and are taking their time to make workforce decisions. The quicker the Eurozone sovereign debt crisis is resolved and we get some economic visibility, the better it will be for employer confidence and the UK jobs market.”

He went on to say that employers are starting the year off “on a cautious note,” taking their time over decisions about hiring. In last month’s EC JobsOutlook report – a major survey of employers – “71% of them said they still intend to increase their permanent workforces in the coming year and this month’s Report on Jobs shows that vacancies remain strong,” Mr Green added.

The moral of the story? Taking cyanide pills at this stage may be a tad premature.

Source:

http://www.rec.uk.com/press/news/1930