The UK labour market is weakening rapidly in response to the global credit crunch, according to a new survey reported on XpertHR today (subscription required).
The research, from the Recruitment & Employment Confederation (REC) and consultants KPMG, finds that October 2008 saw the sharpest drop in overall demand for temporary and permanent staff since the survey began in October 1997.
And as demand continues to slow sharply, so candidate availability is showing rapid growth, pushed further by mounting redundancy levels across many sectors.
The REC also notes that reduced demand coupled with increased availability means employers now have the upper hand in pay negotiations. Rates paid for both permanent placements and temporary engagements fell back in October 2008.
It remains to be seen if the rather bleak findings of this report are reflected in official unemployment figures, to be published on Wednesday 12 November 2008.
Current unemployment figures (subscription required), published on 15 October 2008, show that unemployment hit 5.7% during the period June to August 2008. The ILO unemployment level was 1.79 million, up 164,000 on the previous three months, and up 146,000 on the same period a year ago.
- Has your organisation recently carried out an annual pay review? If so, and if it has now been settled, please get in touch so that we can add your organisation's pay award to the IRS database.
|
| Permalink | Email this |
