The latest Reed Job Index shows that UK job opportunities slipped back for the second consecutive month in May.
Despite this, the year-on-year demand is up 18 points and the Job Index now stands at 121, whilst the Salary Index has dropped to 98 after wages for new positions were found to be 2% lower in real terms than they were in the final month of 2009. The Reed Job Index was first published in December 2009 and the Index’s baseline was set at 100.
Private sector growth has fuelled the increase but the public sector did register a 9 point increase last month to give the Reed Public Sector Job Index a total of 59.
Not all sectors registered a decline. Retail, leisure and tourism led the way and demand also grew in consultancy, logistics, strategy and transport.
Reed’s chairman, James Reed, explained that more people are looking for jobs now because of salary freezes and price and tax increases. 97% of employers rank mindset above skill set and candidates must make their CV stand out.
The Services Purchasing Managers Index also dropped last month; from 54.3 in April to 53.8. This suggests that growth should still be marginally higher than it was in the six month period ending March. An Index reading above 50 indicates growth in the sector, so the latest figures show a deceleration.
The PMI for recruitment registered 50.1, suggesting marginal growth but the manufacturing PMI dropped to its lowest level since September 2009 when the UK was still in the middle of the recession.
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