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UK 'jobs crisis' is underway, recruiters warn

UK ‘Jobs Crisis’ is Underway, Recruiters Warn

LONDON – The collapse in Britain’s labor market slowed slightly last month, according to a survey conducted Wednesday by the Confederation of Recruitment and Employment (REC) body warning that a “labor crisis” is underway.
The figures from REC and KPMG accountants underscore the challenge facing Finance Minister Rishi Sunak, before an update to parliament on Wednesday, on measures to support workers after the coronavirus pandemic.
REC said staff demand continued to drop and at 31.9 in June, compared to 19.1 a month earlier, it remained well below the 50 level that represents an increase in hiring.
“This is now a job crisis,” said Neil Carberry, executive director of REC.
“Rishi Sunak should use today’s Summer Declaration to boost job creation, with a cut in National Insurance designed to retain jobs and boost hiring.”
According to a survey the supply of available workers soared in June is the highest number in more than a decade, which is based on the responses of around 400 hiring companies.
Last month, the Bank of England said there were some signs that the economy had recovered more than it initially expected, but added that an increase in unemployment could be worse than previously thought.
On the latter front, the REC survey is unlikely to reassure Bank of England officials.
“While there are indications that the worst declines have been left behind, today’s figures show that it will be a while before we see job placements grow month by month,” Carberry said.
(Sahar News Monitoring Desk)

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