Recruitment Information – Articles and Press Releases
Job Agencies In London to be affected by Emergency Budget
by Adam Richardson of Yellow Cat Recruitment.« Back
This month’s JobsOutlook, the employer-driven survey from the REC, has revealed that the threat of public sector cuts has knocked employers’ confidence.
Seen as the first sign of uncertainty in employers’ plans to hire following the budget announcement, the short term demand for temporary and contract staff has lowered with only one in five employers surveyed saying that they planned to use more short term support staff in the next quarter. This compares to one in four last month and could affect job agencies in London.
Commenting on the JobsOutlook findings, Roger Tweedy, the REC’s Director of Research, said:
“The uncertainty of the wider global economic situation and the contents of the much anticipated emergency budget have made it difficult for employers to be more positive about their hiring intentions at this stage. The longer term trends are encouraging but we may now have to wait until the autumn for further positive momentum to return to the labour market.
“As public spending cuts begin in earnest, we believe flexible temporary and interim staffing will be essential to the ultimate re-engineering of the sector. At the same time, the private sector will increase its reliance on the same resource to cushion it from continued economic uncertainty and to access rare skills.
“We will be using the JobsOutlook survey to monitor the impact of budget cuts to both the public and private sector. Currently 17 per cent of public sector organisations think the cuts will have a very serious impact.”