Employers are reluctant to hire new staff according to new report

Employers remain cautious about the economic outlook, said the Recruitment and Employment Confederation (REC)

Firms are reluctant to hire new staff, leading to a further reduction in the number of jobseekers placed in work by recruiters, according to a new report.

Employers remain cautious about the economic outlook, said the Recruitment and Employment Confederation (REC).

Its survey of hundreds of recruitment agencies suggested that the number of candidates placed in permanent jobs had been falling for two years.

Vacancies for permanent jobs fell sharply in sectors including retail but increased in nursing and medical care, the study found.

The availability of staff increased last month following more redundancies and lower demand for workers, said the REC.

Chief executive Neil Carberry said the jobs market was "waiting for a signal", adding: "Recruiters report that projects in client businesses are ready to go, but confidence is not yet high enough to push the button."

"The market for permanent jobs declined in September but more slowly than in the month before, while the temporary hiring market was more resilient and grew in some places."

"Private sector vacancies are close to flat, which also suggests businesses are holding position."

"Pay continues to moderate and is now below its long-term trend."