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Government cuts hitting jobs market


Thursday August 5th 2010

Public sector cuts are starting to bite as evidenced by the slowing rate of increase in the number of permanent and temporary jobs last month, research by recruitment agencies have said.

There has been a "significant" deceleration in the jobs market, with the rate of expansion easing to an eight-month low, according to the Recruitment and Employment Confederation (REC).

The engineering and construction sectors had the most in-demand jobs.

While there was a rise in the number of temporary staff available for work, the number of permanent staff available to work fell in July for the second time in three months.

Kevin Green, chief executive of the REC, said: "This is the first real indicator that cuts in the public sector are beginning to bite. Nowhere is this more apparent than in nursing and medical care, where demand for both permanent and temporary staff has fallen away drastically compared to last year when it was the only sector experiencing growth.

"With 600,000 job cuts forecast in the public sector over the next year, the Government must do everything possible to boost job creation in private sector, in particular by reducing business taxation and regulation."

Copyright © Press Association 2010

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