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Hiring slows due to financial fear

The forecast for jobs is the weakest for over a decade as firms continue to cut back on hiring because of worries about the state of the economy, it has been claimed. Recruitment specialists Manpower said confidence had dipped across most sectors and regions, but there had been a “marked decrease” in the taking on of staff in finance and business services companies.

A survey of 2,200 employers showed that almost nine out of 10 had no plans to take on new employees. Only 9% expected to recruit, and 3% intended to make redundancies.

Mark Cahill, Manpower Managing Director, said: “Employer hiring confidence continues to weaken…at a pace we have not seen in 15 years. Concerns about the strength and performance of the UK economy, coupled with recent worries about the stock market and consumer confidence, are having an impact - in particular in the Finance & Business Services sector. The decline in hiring confidence in the City and financial institutions sparks a genuine concern over the impact of the credit crunch.”

The employment outlook was most hopeful among employers in utilities and manufacturing, said Manpower. Firms in the East of England were most optimistic on the jobs front, while those in the North West, East Midlands and South West were most gloomy.

This was posted in Bdaily's Members' News section by Ruth Mitchell .