The Report on Jobs is a monthly publication produced by Markit Economics and sponsored by the Recruitment and Employment Confederation and KPMG LLP.

The report features original survey data which provide the most up-to-date monthly picture of recruitment, employment, staff availability and employee earnings trends available.

Key points from June survey

Slower fall in staff appointments

Although permanent placements continued to decrease in June, the latest drop was the weakest in thirteen months and much smaller compared with the severe falls seen around the turn of the year. Similarly, temporary/contract staff billings declined at the slowest rate since last September.

Decline in vacancies eased

Demand for staff contracted at a slower rate in June. The number of permanent job vacancies fell at the weakest rate in nine months, while the latest drop in temporary/contract staff vacancies was the smallest in eight months.

Wages and salaries continued to decrease

June data pointed to a further reduction in employee pay, reflecting weak demand for staff and high levels of candidate availability. Permanent staff salaries fell at a marked rate, albeit the slowest in six months. Temporary/contract staff pay declined at a similar pace to May.

Growth of candidate availability remained strong

Recruitment consultants reported another month of rising staff availability during June. The supply of both permanent and temporary/contract candidates increased sharply, albeit at the slowest rates in nine and eight months respectively.

Commenting on the latest survey results, Mike Stevens, Partner and Head of Business Services at KPMG said:

“Although the rate of decline for permanent and temporary placements continues to slow, it is probably too early to talk about a recovery in the UK jobs market. One reason why we see continued improvements may be that more UK employers are asking staff to work reduced hours for lower pay in return for less aggressive redundancy plans. This approach is definitely one of the hallmarks of the current recession. Many employers understand they need to engage properly with employees to address the difficult economic situation. They are keen to retain access to the knowledge and skills of their staff and employees can feel slightly less insecure. This approach may have played a part in moderating the impact on employment during the current recession.”