Permanent Vacancies Decline but PAYE Umbrella Contractors Still in Demand in November

Job seekers on the lookout for permanent vacancies had cold comfort in November, according to the latest REC/KPMG Report on Jobs, which has just been published.

Although PAYE umbrella contractors will hardly be dancing in the street upon reading the report, they have more cause to be cautiously optimistic than their permanent counterparts: temporary billings continued their as yet unbroken month-on-month rise in November, making it the 28th consecutive month to see growth in temp posts. However, the growth was less vigorous than that recorded in October.

The growth rate in permanent vacancies, however, was in more dire straits, with billings falling for the second consecutive month in November, reaching a rate of decline last seen 25 months ago in July 2009. Contractors working through umbrella companies have weathered the economic gloom rather better.

Kevin Green, the REC’s Chief Executive, said that the latest report reveals a “rapidly declining” jobs market. He went on “The market has been slowing since May but this slowdown has accelerated in the autumn. This is being driven by the double whammy of falling business and consumer confidence.”

“This is bad news for those out of work and, as a consequence, we expect unemployment to rise in December and January. On a positive note, however, the report shows that temporary staff appointments are still growing, albeit at a decreasing rate.”

If confidence amongst consumers and businesses does not pick up very quickly, Mr Green warned, the government will have to take more radical measures early in the New Year to revive it.

Source:

http://www.rec.uk.com/press/news/1887