The Chartered Institute of Personal and Development (CIPD) has today predicted that the jobs market in 2012 will continue to deteriorate.
Providing a recruitment industry perspective on the jobs outlook, Kevin Green, the REC’s Cheif Executive says:
“The labour market will remain fragile for the first part of 2012. However, it is important that we do not systematically talk the jobs market down, especially as employer confidence is the priciple driver for job creation. The engine room for new jobs will be small businesses. Most of these fo not have HR or personnel departments and are prehaps not reflected in the CIPD’s assessment. Our own data shows that, although employers are curretnly cautious about permanent hiring, a significant number will consider bringing in new staff over the coming year. One priority in 2012 must be to address the current skills mismatch which means that many employers and recruiters are actually reporting a shortage of suitable candidates.”
“In addition, the UK’s temporary and contract work market remains strong and continues to provide a crucial outlet for business and for workers. The REC/KPMG Report on Jobs shows that a monthly temp billings have continued to increase over the last year and the forward-looking REC Jobs-Outlook shows that over 80 per cent of employers are planning to increase or maintain their temporary staffing levels over the next 12months. Our own forecast is the unemployment will peak at around 2.75 million and that there will continue to be a significant demand for staff, especially at the higher end of the jobs market. By the end of 2012 the private sector should be in a good position to absorb ongoing public sector cuts. An early and effective end to the sovereign debt crisis in Europe would restore much needed confidence, encourage banks to lend and businesses to invest. This in turn would help to kick-start the UK’s job creation machine and ensure a brighter year for our jobs market.”