Private sector jobs growth slows

The number of job vacancies created in the private sector slipped further back in April from March, according to data from the Reed recruitment agency.

Reed’s index of vacancies fell three points, or 2%, compared with March, which was itself down on February.

However, year-on-year demand is still up 22%, according to Reed’s analysis of vacancies at 8,000 employers.

The yearly rise is due to private sector growth, as new public sector jobs are down significantly, Reed said.

April’s fall was due mainly to jobs growth in the banking and tourism sectors falling back after strong growth in February.

Sectors seeing jobs growth were IT and engineering.

Salaries for new jobs in April were 1% lower than in December 2009.

Although this level is unchanged from the previous month, it means pay packets are lagging further behind as inflation rises.

Martin Warnes, managing director of reed.co.uk, said that the fall in April was perhaps not surprising “as the Easter and Royal Wedding holidays led to a disjointed period for UK businesses”.

But he added: “Clearly business growth has been sustained at a higher level than the last quarter of 2010, but continued recovery remains difficult to predict.”