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Job vacancies fall at record rate

09-03-09 15:33

Vacancies at UK employment agencies are declining at their fastest rate on record, a survey has indicated.

The Recruitment and Employment Confederation (REC) also says pay rates are falling, while the number of people hunting for jobs is rising sharply.

The REC, which has been doing its monthly survey for 12 years, says the UK jobs market is yet to bottom out.

And it believes employers are making savings by replacing senior staff with less experienced people on lower pay.

The REC's Jobs Vacancies Index edged down to a new record low in February of 27.6, down from 27.7 in January.

Any figure below 50 indicates a decline.

"It is clear that we have not yet hit the bottom of the jobs market," said Kevin Green, chief executive of the REC.

The number of people out of work between October and December last year rose to 1.97 million - the highest figure since 1997. The unemployment rate is now 6.3%.

Claimant count

The number of people claiming jobseeker's allowance increased in January by 73,800 to 1.23 million.

The claimant count has now increased for 12 months in a row. The percentage of the working population who are claiming jobseeker's allowance is now 3.8%, up 0.2% on December's figure.

However, the official numbers out of work are much lower so far than the recessions of the early 1980s and early 1990s.

Among the worst-hit areas are the North East of England (8.2%), the North West (7.6%), London (7.4%) and the West Midlands (7.1%).

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