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Job market shows signs of contraction say experts

The job market in the UK is set to face a “slow and painful contraction” as firms delay recruiting more staff.

According to BBC reports, the CIPD believe that jobs will worsen in the medium time amid global economic turmoil.

After surveying 1000 employers, the CIPD discovered that employers were adopting a “wait and see policy” towards hiring plans, which were often dwarfed by losses in the public sector.

Employers are looking to reduce recruitment whilst also making fewer redundancies. Numbers of businesses looking to outsource work overseas has also seen a significant dip.

The CIPD also expressed fears that the employment situation could worsen if the euro zone crisis continued.

Policy adviser at the CIPD Gerwyn Davies can see no immediate signs of the UK labour market improving in the “short or medium term”, but was encouraged by the fact that fewer employers are looking to relocate abroad.

These figures also come two days before new unemployment statistics, which are expected to show that more than a million 16 to 24 year olds are out of work

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