Number of permanent job appointments falls

PERMANENT job placements rose at their slowest rate in nearly two years last month and wage inflation eased, according to a survey published today.

The KPMG/Recruitment and Employment Federation Report on Jobs showed the index for permanent placements fell to 53.7 in November from 57.4 in October – its lowest in 21 months.

Alan Nolan, director at KPMG, said:

“The credit crunch is tightening its grip over the economy. Both demand for permanent staff and vacancies are down on levels earlier this year.”

However, the report showed that temporary placements remain firm, suggesting that firms are preferring short-term options rather than long-term commitments as economic uncertainty continues to shake confidence.

The index of salaries for permanent staff fell to 60.0 in November from 61.9 in October, the lowest in 16 months.