While the start of 2011 will be “bumpy” for the employment market, the medium-term outlook is relatively positive, it has been claimed.

Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), said that the effects of the government spending cuts and VAT rise will be felt across the economy during Q1 2011.

With local elections scheduled for May this year, plus the referendum on voting reform, there will also be significant political uncertainty over the coming months, he stated.

However, Mr Green claimed that as the year progresses, the outlook for the labour market will gradually improve.

“There is a consensus amongst economic forecasts that private sector investment and trade will pick up and start to accelerate in the second half of the year. This will start to stimulate the creation of new jobs,” he stated.

“Recruiters are starting to think and talk about growth again after three years of cutting costs and surviving.”

Earlier this week, Sir Richard Lambert, director-general of the Confederation of British Industry, forecast an economic improvement following the first three months of 2011.

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Recruitment and Employment Confederation

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