The UK is now feeling the full impact of the Eurozone recession. The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs, a leading indicator for the employment market in the UK is showing a rapid decline in placements - the worst since 2009.
Kevin Green (REC): - "The sharp drop in the number of people placed into work last month is really disappointing. A decrease in hiring activity means we could see a period of increased unemployment, especially as a new wave of school leavers and graduates will be entering the labour market over the summer.
FT: - The data suggest unemployment may shortly start to rise, partially resolving the puzzle whereby the jobless total has recently been falling despite the UK being officially in a double-dip recession.
Bernard Brown, head of business services at KPMG, said if the acceleration of the hiring decline continued, there was a “very real chance” of unemployment, currently 2.61m, reaching 3m “in the not too distant future”.