Job demand falls at record rate

There are fewer jobs vacancies in almost all sectors of the UK economy

Demand for staff is falling at a record rate in the UK due to the worsening economic situation, according to a report by Britain's recruiters.

The outlook for job hunters continued to worsen sharply, the report bRecruitment and Employment Confederation (REC) and KPMG warned.

It said demand for staff had declined in most areas and fell at its fastest rate since the report began in 1997.

The number of job vacancies also fell - except in the nursing and care sectors.

'Pessimistic projections'

The drop in demand for workers in nearly all sectors has also led to a downward pressures on salaries, the report found.

The REC chief executive Kevin Green said: "These figures are deeply worrying and show that the contraction in the labour market is now rapidly accelerating."

The REC said it wanted urgent meetings with the government about the proposed removal of the VAT concession in April, which it said would put an additional £150m tax on temporary jobs.

Mike Stevens, head of business services at KPMG, which helped compile the report, said: "These latest figures only serve to confirm the most pessimistic projections for the UK jobs market.

"They are also a lead indicator for a rapidly declining employment situation which is not yet reflected in the government's current employment statistics."