Service sector set to suffer recruitment slowdown

The
slump in recruitment activity in the manufacturing sector is set to spread to
the service industry over the coming months, according to research.

The
Recruitment Confidence Index, produced by Cranfield School of Management and
the Daily Telegraph, shows that the majorty of service-sector employers expect unfilled
vacancies and staff turnover to drop in the next six months.

In
manufacturing, unfilled vacancies will also drop, but staff turnover will
increase, reflecting the likelihood of redundancies, according to the research.

The
report claims that the labour market will continue to be tight. Problems in
finding suitable applicants for vacancies are expected to remain the same or
decrease, depending on particular job functions and levels.

Professor
Shaun Tyson, of Cranfield School of Management, said, "The RCI indicates
that the shift in the labour market first predicted by our March survey is now
being experienced, with predictions of job losses in manufacturing and a
slowdown in the service sector.

"However,
as we are at the point of change, there are still many areas and job functions
where recruitment difficulties are continuing. This may be because the time lag
between the anticipated and the actual reduction in the demand for a product or
service in the organisations’ surveyed."

By Mike Broad

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