Umbrella company contractors might be interested to learn what the REC thinks lies ahead of us as we enter into the New Year.
Last week, the CIPD predicted that 2012 would be a difficult year for many as the jobs market continues to deteriorate.
The chief executive of the REC, Kevin Green agrees that the jobs market will stay fragile for the first few months of the year but warns that we should not be overly pessimistic, as this will dent employer confidence.
He went on to explain that small businesses will drive job creation and they may not have been included in the CIPD’s assessment as many do not have HR departments. REC research has shown that although employers remain cautious over hiring permanent staff, many are considering increasing their headcount this year. Many recruiters are also reporting a skills mismatch and the lack of suitably qualified candidates is creating shortages that must be addressed this year.
The outlook for contractors and temporary workers looks good as businesses continue to take advantage of the flexible workforce. The latest REC Jobs Outlook discovered that at least 80% of employers intend to maintain or increase the size of their temporary workforce this year.
Green went on to say that he expects unemployment to peak at about 2.75 million and demand for staff will continue, particularly at the top end of the labour market. Furthermore, the private sector should be able to absorb public sector redundancies by the end of the year.
The current crisis in the Eurozone is denting confidence and a speedy resolution is needed to encourage business investment and bank lending. This would kick-start job creation and ensure the jobs market had a better year, he concluded.
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