Job creation has begun to slow down as the public sector funds get slashed, according to a recent report by the Recruitment and Employment Confederation (REC) and KPMG.
The latest figures from the KPMG/REC report indicate that recruiters are filling permanent vacancies at the lowest levels in nine month. It is thought that this is largely due to measures outlined in George Osborne’s Emergency Budget in May.
The “Permanent Job Index” dropped to 60.2 points in July and the “Temporary Positions Index” fell to 54.3 points, with anything in excess of 50 representing growth in the sector.
Kevin Green, Chief Executive Officer for REC, stated that both indicies still appeared to be strong, even by historical standards.
Mr Green went on to add that the figures were still a concern:
“This month’s data confirms a significant deceleration in the jobs market with the rate of expansion easing to an eight-month low.
“This is the first real indicator that cuts in the public sector are beginning to bite.”
Despite recruitment seeing a slow-down amongst many businesses, the report also suggested that some sectors performed better than other. Both the Construction and Engineering industries maintained a high level of demand for both permanent and temporary employees.
Many small business groups, including the Forum of Private Business (FPB), still maintain that there is no right or wrong time to start a business. In fact, many are saying that now is the perfect time to work for yourself should the opportunity arise.
With interest rates remaining low, red-tape being slashed by the Government to help small business startups and business tax exemptions for many they might not be far wrong…
Many more small businesses expected
The number of small businesses in the UK is expected to blast past record levels, the FSB suggests.
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