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The Chartered Institute of Personnel and Development (CIPD) has reported that  it finds the outlook for employment and pay to be in line with its start of year forecast but warns that a rise in interest rates would put a brake on recruitment and risks leading to an avalanche of redundancies.  

CIPD’s chief economist John Philpott said the start of year forecast predicted 2008 to the decades worst year for jobs. He says, “we predicted some growth in employment - though only a third of that enjoyed in 2006 and 2007 and not enough to present a rise in unemployment.”

Meanwhile the Monster Employment Index UK decreased by four points in June to reach a level of177, seven points higher than a year ago but 15 points short of its February peak. Hiring in the marketing, PR and media sector fell most, while there was a strong upturn in demand for hospitality and tourism workers

The Monster Index also showed that across the UK online hiring had dipped further, with London and the South West seeing decreases for the fourth successive month.

“Confidence in the UK economy is falling among consumers and businesses alike, and employers have responded by scaling back on hiring,” commented Hugo Sellert, Head of Economic Research, Monster Worldwide. “Still, the availability of jobs online is significantly higher than last year, and emand remains elevated in both manufacturing and parts of the service sector”.

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Related links

• John Philpott at CIPD
• Monster Corporate