Demand for permanent staff falling

Demand for permanent staff is falling according to a report
by the Recruitment and Employment Confederation.

The June REC survey found that the number of permanent staff
placements had fallen for the first time since February 1999 while press
recruitment has dropped at the sharpest rate since January 1999.

Demand for permanent IT and executive staff fell for the
second month running but has risen for staff at the lower end of the labour
market, particularly for blue collar and lower skilled white collar workers.

Press recruitment advertising also fell sharply in May
signalling weaker demand for staff at the upper end of the labour market.

The Press Recruitment Advertising Index, which tracks the
top end of the labour market, fell for the sixth consecutive month in May to
the lowest level for almost two years, the fastest annual rate of decline since

The availability of both permanent and temporary staff
increased for the first time since May 1999, which resulted in a weaker growth
of pay rates.

By Katie Hawkins




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