Labour demand stabilises in February, REC says

Labour demand stabilised in February, although starting salaries fell modestly, even in the face of the national lockdown, the results of a survey revealed.

According to the Recruitment and Employment Confederation, the lockdown continued to weigh on hiring decisions with permanent staff appointments down for a second consecutive month.

Nevertheless, the pace of decline slowed from January's and growth in temp billings hit a seven-month low.

To take note of, lingering uncertainty and concerns around job security meant that candidates showed a greater reluctance to seek new roles.

Commenting on the results of the survey, REC chief Neil Carberry said the labour market had coped "remarkably well" with the national lockdown.

Carberry also said that the UK was well-positioned for a recovery as the economy reopened, welcoming the Chancellor's decision in the Budget to extend the furlough scheme and business tax deferrals.

However, he believed that the Chancellor should also have cut National Insurance, replaced the "failed" apprenticeship levy with a flexible one and invested in job finding services.