The catering and hotel sector has seen a sharp drop in permanent jobs in the last month, with temporary placements also continuing to fall.
Latest figures from KPMG’s Report on Jobs show that the rate of decline in permanent staff appointments has accelerated for the first time in four months, leaving an increased number of staff seeking jobs in the industry.
The number of temporary staff contracts also dropped during July, although the rate of decline was recorded as the slowest in the last 10 months.
Tom Hadley, director of external relations for the Recruitment and Employment Confederation, said the figures signalled a return to normality for the temporary work market.
“The fact that the decline in permanent staff appointments accelerated again in July following four months of relative stabilisation confirms that that it’s going to be a long and rocky road back for the overall UK jobs market,” he said. “This latest 'relapse' echoes the ongoing feedback from recruiters on the ground where any upturn in demand for permanent staff one month is often followed by a dearth.”
Richard Hathaway, head of Travel, Leisure and Tourism at KPMG, said the hotel sector had suffered the most during the recession.
“Employers are having to make difficult decisions around recruitment and maybe utilising temporary roles more due to the increased flexibility around staffing levels this allows,” he said.
Despite a rise in staff availability this month, KPMG predicts market conditions to show ‘slight signs’ of improvement by the end of the year.