Jobs Market grows very slowly as public sector cuts and private industry recovers

The jobs market is growing but at a slower rate than earlier this year, further evidence of the UK's two-speed labour market - with private firms recruiting staff as the public sector cuts back, new research showed today.





The rate of expansion of permanent staff placements eased in March following a 10-month high in February, a study among 400 recruitment and employment firms revealed.
The availability of staff to fill permanent jobs rose for the second month in a row, although temporary staff availability slowed.
Kevin Green, chief executive of the Recruitment and Employment Confederation, which conducted the survey, said: "The jobs market is still growing but at a slower rate than in February.
"The report again highlights that the UK has a two-speed labour market, with the private sector creating jobs as the public sector reduces employment.

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"The good news is that vacancies are rising at their highest rate since April last year and March is the 18th consecutive month that vacancies have grown. This demonstrates increasing demand for new staff from private-sector businesses.
"What is concerning is the increase in starting salaries for permanent staff, which is due to two factors. Firstly, people changing jobs are clearly looking for higher pay to compensate for inflation, and secondly, the growing competition for quality candidates in some sectors such as IT, engineering and finance."
Bernard Brown of KPMG, which helped with the study, said: "The latest figures show that the job market recovery remains volatile."
Employment Minister Chris Grayling said: "We will only get Britain working again if we create the right conditions for the private sector to grow and create jobs. These figures show we're moving in the right direction and on Friday we announced the Work Programme which will provide specialised tailored support for all those who need it to make the journey back into work