04/12/2008: - The big freeze is on the way - New job market data revealed

A new report published by the REC and sponsored by KPMG has revealed further decline in the job market. The report shows the number of permanent placements have declined for the eighth successive month and at a sharper rate than ever before recorded by the survey.

The report speculates that "the deteriorating economic climate and ongoing credit squeeze" are the main factors underlining the figures and suggests that firms increasingly are turning to a recruitment freeze as economic conditions worsen.

Miller McKenzie have encountered recruitment freezes during current headhunting assignments and believes that the notion of a complete recruitment freeze is both flawed and unlikely to last. Natural staff turnover (from resignations, retirements and promotions etc.) will mean that firms are unlikely to stick to a self imposed recruitment ban for very long. This churning of staff is a natural process and one that is impossible to ignore.

Kevin Green, the REC's Chief Executive believes that the government now has a key responsibility to face up to "These figures confirm that the jobs market has hit the wall. While public sector, contracting and interim are faring slightly better, it’s now clear the Government must not remove the VAT concession on temporary work planned for April as this will destroy jobs when we can least afford it.”

The report is taken from survey data gathered from recruitment consultancies.

The complete article in it's original form can be found by clicking this link (this will take you away from the Miller McKenzie website).

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