A host of recent surveys make for dismal reading for recruiters:

• The number of HR vacancies fell by nearly two-thirds (63%) during 2008 (external website), according to the Monster Employment Index;
• The finance sector labour market is faring still worse, with the number of City job vacancies falling by two-thirds (65%) over the year to December 2008 (external website), according to City recruitment specialists Morgan McKinley. The survey also finds that the average City salary is now firmly parked below the £50,000 mark, standing at £49,420 in December 2008, down 1% on that recorded one year previously. Robert Thesiger, CEO of Imprint, Morgan McKinley's parent company, believes these findings indicate a sea-change in the City jobs market: "The war for talent is over - employers now have a much wider pool of talent to choose from and candidates are facing fierce competition for the available roles."
• The Recruitment & Employment Confederation (REC)/ KPMG reports that December 2008 saw UK recruitment agencies register the biggest fall in overall demand for both temporary and permanent staff (subscription required) since its survey began in October 1997.

The latter survey also finds that candidate availability continues to rise rapidly, with widespread job losses pushing ever more individuals back into the recruitment market.

KPMG partner and head of business services Mike Stevens comments that: "These latest figures only serve to confirm the most pessimistic projections for the UK jobs market. They are also a lead indicator for a rapidly declining employment situation which is not yet reflected in the government's current employment statistics."

The latest official UK unemployment figures are scheduled to be published next Wednesday (21 January 2009), and will be reported on XpertHR's economic indicators pages (subscription required) on the same day. Place your bets now as to just how pretty a picture they will paint of the labour market...

• Employee referral schemes: the IRS survey (subscription required) The worsening economic climate challenges recruiters to use the most cost-effective ways of finding top-quality candidates - could employee referral schemes provide the answer? This IRS report surveys more than 100 employers to find out.