July sees fall in permanent and temporary hirings

Findings from the Recruitment and Employment Confederation and accountancy firm KPMG reveal that July saw further reductions in both permanent and short-term staff appointments.

Despite the fall, in the cases of both permanent and short-term hirings, the rates of decline eased slightly since June.

Findings from the Office for National Statistics (ONS) in July showed that the rate of unemployment in the UK fell to 8.1 per cent in the three months to May, compared to 8.3 per cent in the quarter proceeding. Those out of work dipped to 2.58 million, down by 65,000.

The new survey also finds that July produced a slight increase in permanent salaries while temporary worker pay declined.

Those in the engineering/construction and nursing/medical workers are most in demand.

Bernard Brown, partner and head of business services at KPMG, says that the findings come a few weeks after an 'audible sigh of relief' in the UK after the ONS statistics.

He adds, 'However, my concern is that any sigh of relief may be mistaken for a groan of exasperation, because the rate at which employers are recruiting has decreased for the second consecutive month, and this suggests that there is still a high degree of uncertainty.'

Brown believes that the 'Olympics effect' is combining with a traditionally slow summer period for those looking for work and that the true story will only emerge in the autumn.

Further results from the survey point towards a rise in average starting salaries for those placed in permanent jobs. Those entering temporary or contract work saw hourly rates of pay fall slightly.

The Midlands was the only region to not record a fall in permanent placements, while London posted the steepest drop.

Recruitment and Employment Confederation chief executive Kevin Green comments, 'The UK's labour market deserves a gold medal for its incredible performance in the face of adversity so far this year.

'What must be emphasised, though, is that employers are still hiring. In fact, the number of vacancies has grown, but fragile confidence means they are taking longer to make decisions about appointments and the whole process of recruiting is slowing down.'