Recruitment falls to 15-year low

LONDON (Reuters) - Britain's sharp economic slowdown has left companies more reluctant to take on new staff than at any time in almost 15 years, a survey showed on Tuesday.

The Manpower fourth quarter seasonally-adjusted employment outlook balance fell to zero, five percentage points lower than in the third quarter and the weakest since the first quarter of 1994.

Stripping out seasonal adjustments, the balance was -1, the weakest reading in a decade.

Sectors most exposed to the credit crunch -- construction, High Street retailers and finance and business services -- were the hardest hit.

The survey chimes with official figures showing the labour market has turned decisively as the economy stood still in the second quarter. The number of people out of work and claiming benefits rose in July by its largest amount since 1992 and has climbed for six consecutive months.

"In the coming months we will continue to see employers making do with the people they have, finding ways to contain costs and being very cautious about hiring decisions," said Mark Cahill, Managing Director of Manpower UK.

At a regional level, London employers were the most upbeat. Employers in the South East were the most gloomy, followed by firms in Wales and Scotland.

(Editing by Swaha Pattanaik)