Jobs Outlook

Posted on: January 12th, 2011

It was good to read today’s Report on Jobs published by the REC and KPMG. It shows that permanent and temporary staff placements continued to rise in December. Permanent salaries increased at a faster rate as employers competed for skilled candidates, but improved availability of temporary staff served to constrain temp pay inflation.

When I analyse the data it is clear that the private sector is the catalyst for the recent growth in jobs, and I welcome the latest government stance to help businesses develop more job opportunities. The government’s meeting of the UK’s top employers is a positive move, but attention must also be given to the job creation potential of small businesses. This is particularly important for the 1 million young people currently not in education or employment. I just hope the public sector cuts and the recent rise in VAT will not adversely affect the fragile improvement in the UK jobs market.

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