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UK job recruitment fell in December for third month in a row

UK job recruitment fell in December for third month in a rowThe number of people who were placed into permanent jobs by UK recruitment agencies fell for a third month in a row in December.

According to the Irish Examiner, a study by the Recruitment and Employment Confederation in Britain also showed that there had been a dip in temporary and contract staff, which was the first reduction in over two years.

Also, for the first time in a year, the pay rates for temporary staff fell slightly last month; however, pay remained around the same mark for permanent staff.

The report is based on around 400 recruitment firms in the UK and it revealed that there was a large increase in the number of people seeking work.

REC chief executive Kevin Green said: “The report highlights a third month of contraction in permanent placements and a reduction in the use of temps for the first time in more than two years.

“There are clearly signs of decline but we are nowhere near the lows seen in 2009 when the market deteriorated at a drastically faster rate than we are seeing today.

“Employers are still hiring and using temps in large numbers. However, they are starting the year on a cautious note and are taking their time to make workforce decisions.

“The quicker the eurozone sovereign debt crisis is resolved and we get some economic visibility, the better it will be for employer confidence and the UK jobs market.

“Overall, the cautiousness in hiring seems to be driven by a lack of confidence in the wider economic situation than a significant downturn in demand.”

KPMG, was one of the companies which helped with the report and Bernard Brown of KPMG, said: “It is a huge concern to see temporary placements falling in tandem with permanent employment opportunities, making it difficult to be optimistic about the employment market in 2012.

“The decline in temporary roles, seen for the first time in almost two-and-a-half years, is a clear indication that businesses are too nervous to even make short-term commitments, given the continued uncertainty across the eurozone and so much talk of a tough year ahead.”