–KPMG/REC: UK May Permanent Placements 61.3 vs 63.2 in April
–KPMG/REC: UK May Temporary Placements 59.2 vs 58.7 in April
–KPMG/REC: UK May Vacancies Index 60.6 vs 61.4 in April
–KPMG/REC: UK May Permanent Salaries Index 53.9 vs 55.2 in April
–KPMG/REC: Freezes In Public Sector Slowing UK Jobs Growth

LONDON (MNI) – UK jobs continued to grow in May, but at a slower
rate than in April as public sector employers impose embargoes on
hiring, according to the latest survey of the UK labour market for
KPMG/REC and compiled by Markit.

Both the temporary and permanent job indices remained comfortably
above the 50 contraction/expansion level in April, marking the tenth
consecutive monthly expansion in both job markets.

The May permanent placements index came in at 61.3, down from 63.2
in April. The temporary placements index rose to 59.2 in May from 58.7
in April.

The KMPG/REC surveys have tended to paint a brighter picture of the
jobs market than the official data, which have shown employment
declining. The most recent official data showed that in three months to
March, 72.0% of the workforce was employed, down 0.3 percentage
points on the quarter and the lowest proportion in employment since the
three months to September 1996.

The KPMG/REC survey shows pay growth easing after last month’s
sharp rise in the permanent salaries index marked the fastest wage
inflation since March 2008. The permanent salaries index slipped back to
53.9 in May from 55.2 in April. The temporary/contract pay index fell to
52.5 in May from 53.1 in April.

The permanent staff availability index fell to 49.7 in May from
52.1 in April, while the temporary staff availability index rose to 53.5
from 53.0 in April.

Job vacancies continued to grow, albeit at a slower pace, with the
job vacancies index in May slipping to 60.6 from 61.4 in April.

Bernard Brown, head of Business Services at KPMG, said that the
slowing of hiring activity in the public sector – due to fiscal
tightening – tempered the upward effects of intensifying demand for
staff from the private sector.

“This doesn’t come as a surprise since the new government has now
begun to spell out where the axe will fall. Many public sector employers
will have imposed embargoes on recruitment at least until we get more
details of further cuts in the emergency budget on June 22,” Brown
said.

–London newsroom: 4420 7862 7491; email ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]