03/09/2008

Job Losses Compound Gloomy Employment Reports

Two leading UK businesses have today compounded reports of a British employment slump, with the announcement of more jobs losses.

The situation has been worsened with the news that private equity firm Pearl Group is to slash around 500 workers from operations in Glasgow and Peterborough.

Workers union Unite has slammed Pearl's decision as "a slap in the face for the workforce".

High street travel agent Thomas Cook has also announced 180 jobs cuts at its Glasgow-based call centre.

This is the latest cost saving move by the travel giant, who closed a call centre in Accrington in June, resulting in 270 redundancies.

Today's news comes amid a fall in demand for permanent staff, according to the Recruitment and Employment Confederation.

The confederation said the rate of decline for permanent jobs was the worst since November 2001.

Over 400 recruitment and employment agencies were involved in the study.

Kevin Green, REC chief executive, said: "The demand for both permanent and temporary workers is weakening, although it must be remembered that this follows a period of unprecedented high demand for staff."

KPMG Director Alan Nolan said there is an increase in the number of unused skilled workers.

"These workers are starting to drift abroad in search of employment, and there is a risk that when the market turns the UK will be left behind by a skills shortage," said Mr Nolan.

(PR/JM)

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