Public sector staff cuts 'slowing job creation'
4th August 2010
Staff cuts in the public sector have slowed the rate of job creation in both permanent and temporary sectors, according to a recruitment-industry body.
The Recruitment and Employment Confederation (REC) said the number of permanent and temporary jobs increased last month - but at a slower rate than earlier in the year - marking a "significant" deceleration in the jobs market, with the rate of expansion easing to an eight-month low.
The most sought-after jobs were in the engineering and construction sectors and this highlights the high level of competition in the areas which have been hit badly by the recession.
With unemployment expected to rise further before the UK finally emerges from the economic downturn, there has been a surge in the number of people taking out income protection cover in order to safeguard themselves against redundancy.
The number of permanent staff available to work fell in July for the second time in three months, although there was an increase in the number of temporary staff available for work.
Kevin Green, chief executive of the REC, said: "This is the first real indicator that cuts in the public sector are beginning to bite. Nowhere is this more apparent than in nursing and medical care, where demand for both permanent and temporary staff has fallen away drastically compared to last year when it was the only sector experiencing growth.
"With 600,000 job cuts forecast in the public sector over the next year, the Government must do everything possible to boost job creation in private sector, in particular by reducing business taxation and regulation."
Copyright © Press Association 2010
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