Unemployment hits 7-year high

03/09/2008

Rocketing inflation and stagnant economic growth have left Britain’s jobs market in its worst state for seven years, new figures have revealed today.

A report by recruitment industry body the Recruitment & Employment Confederation (REC) showed the economic downturn has left employment at its lowest level since 2001.

While unemployment had been falling for the past 15 years, hitting its lowest level for three decades, it has risen by around 70,000 since January, and is set to increase ‘sharply’ over the next year.

The REC said permanent placements fell for the fifth consecutive month in August, while the number of temporary jobs available dropped for the first time since May 2003.

The sectors worst hit by the downturn included the construction sector, and the hotel and catering sectors, which were hit by a ‘record’ drop in the number of jobs. However, the nursing and medical profession saw its strongest growth for eight months – the only sector which saw a growth in demand.

Alan Nolan, director of KPMG, who sponsored the survey, warned skilled workers are increasingly looking abroad for employment.

“The slide in the UK economy continues to hit the jobs market hard, with yet another sharp drop in recruitment.

“UK employers are continuing to control payroll costs through redundancies – and by refusing to take advantage of a growing, but increasingly unused, pool of skilled labour.”