Permanent jobs on the decline

A recent report form the Recruitment and Employment Confederation (REC) has shown that permanent job vacancies are declining. Since July 2009 job vacancies have fallen at the fastest rate so far.

Many companies are putting recruitment on the back burner and are opting for flexible and temporary workers to help their businesses grow.  Only 25% of those in the survey were planning on taking on new employees in 2012.  This means that around 75% are not looking to employ anyone new for at least the next year.

Speaking about the latest figures the chief executive of the REC, Kevin Green, has said, “The market has been slowing since May, but this slowdown has accelerated in the autumn and as a consequence, we expect unemployment to rise in December and January.”

Many contractors, freelancers and consultants may find themselves called upon over the next few months.  Costing far less to companies and reducing their overheads, the flexible workers enable businesses to continue with their work whilst not impacting massively on their budgets in the same way that permanent staff do.

Sara Lee is the spokeswoman for the Federation of Small Businesses and has said, “Even if firms have a need for extra employees, we are seeing business owners put their recruitment plans on hold.  It’s a big responsibility to take on workers, and many firms are waiting for a better economic setting before they make that commitment.”