Job market weakens in June

Mon Jul 7, 2008 1:26pm BST

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LONDON (Reuters) - The number of people placed in permanent jobs fell again in June while vacancies for full-time staff dropped for the first time in five years, a report showed on Monday.

The REC/KPMG report on jobs' permanent placements index fell to 48.2 from 48.6. That was the sharpest decline in over five years.

Placements for temporary staff rose but at a slower pace.

The permanent vacancies index fell to 48.4 in June from 50.2. That was the first drop in vacancies in five years.

"This really is a sobering set of figures proving the credit crunch has finally taken its toll and is now severely weakening the UK jobs market," said Alan Nolan, director at KPMG.

Credit headwind

News headlines speak of recovery, but financing is still a big problem in Germany. The dearth of credit to tide firms over is frustrating policymakers, who are blaming reluctant banks and there is little agreement on how best to increase lending flows. Full Article