Private Sector Needs To Pick Up Slack From The Public Sector According To The REC

Commenting on the latest ONS jobs statistics Kevin Green said that “The latest ONS data mirrors that feedback from those in the front line of the jobs market. Recruitment professionals have reported an increase in both temporary and permanent staff appointments over recent months, although the rates of growth have started to ease. Looking ahead, public sector cuts will clearly be a factor and we can expect the deceleration in the jobs market to continue. However, we are not expecting there to be any significant increase in unemployment. What we can expect a flat jobs market with increased hiring activity in the private sector just about compensating for the public sector squeeze. Achieving this equilibrium is crucial. It must involve limiting the public sector jobs deficit by avoiding knee-jerk staffing cuts as well as well as boosting job creation in the private sector – in particular by reducing business taxation and regulation. In addition, we need to ensure that practical support is in place for those who are being disproportionately affected – for example, young job-seekers looking for that first foothold onto the career ladder”.

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