REC says temporary jobs market slowing due to uncertainty over the AWR

The Chief Executive of the Recruitment & Employment Confederation, Kevin Green, said that “This month’s Report on Jobs shows a clear split developing in the UK labour market. Public sector employment is radically slowing while there is growth in the private sector, confirming that we are now in a two-speed jobs market. A number of permanent hires made in IT, construction and engineering suggest that employer confidence on the whole is improving but temporary employment is slowing. This month’s figures for temporary jobs are the worst we’ve seen for four months and are likely to have been caused by employer caution over the impending Agency Workers Regulations. The Government guidance, published last Friday, should act to reassure employers of the ongoing effectiveness of temporary labour and the value of being able to flex their workforces to meet demand.”

The Head of Business Services for KPMG, Bernard Brown, also went on to say that “The latest figures reveal a very mixed picture of the UK job market.  In many areas of the private sector employers feel confident to hire again on a full time basis, though the picture is very different in the public sector where hiring freezes and cost cutting seems to be the order of the day. Indeed, private sector businesses with a dependency on the public sector are clearly on a knife edge, as they wait to understand how the unfolding government policy will impact them. The fundamental issue facing the UK’s ‘twin track’ job market is whether the private sector can create enough jobs to offset the expected job losses in the public sector.”

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