Unemployment falls by 49,000, contractors told

The unemployment rate has fallen by 49,000 people.

Unemployment has fallen by approximately 49,000 people, new figures have shown, which could be good news for contractors.

Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), has highlighted the fact that the Office for National Statistics figures mirror the experiences people are having on the "front line".

He said that there have been increases in both permanent and temporary staff appointments in the recent past.

While he acknowledged the impact that the public sector cuts will have on the jobs market, he said that it is unlikely this will feed through to a substantial rise in unemployment.

Mr Green said: "What we can expect [is] a flat jobs market with increased hiring activity in the private sector just about compensating for the public sector squeeze."

The organisation and KPMG recently released figures suggesting that the construction industry has experienced the highest demand for staff in July, although the REC''s chief executive called for more government intervention to improve the jobs market.