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Demand for workers at four-year low
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14 January 2008
The Chartered Institute of Personnel and Development (CIPD) said recruitment plans had not changed in recent months as firms adopted a cautious "wait and see" approach to staffing requirements.
A survey of 735 employers showed that just over a third expected staff numbers to have increased in the past few months.
Dr John Philpott, CIPD chief economist, said: "Conditions in the UK labour market are clearly softer than six months ago and softer than at this time of year for several years.
"With employers in 'wait and see' mode it remains possible that falling confidence in the outlook for the economy might still trigger a wave of job cuts. If so the tipping point in confidence could result in a sudden avalanche of redundancies and quickly transform the current relatively benign jobs scene. A further early cut in interest rates would be advisable to limit the chances of this outcome."
Dr Philpott said the labour market was experiencing a period of relative slowdown, which might show up in official unemployment figures being published later.
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