Jobs market slows as public sector cuts start to bite

Fears of a double dip recession might be raised again with the latest jobs figures showing the weakest rate of growth in permanent positions since October last year.

The latest numbers for August from the Recruitment and Employment Confederation (REC) and KPMG show that the recovery in the job market has slowed and pay rates have also eased off.

Jobs in the IT market slipped back slightly but continued to be up year on year with internet developers and business analysts being in particularly short supply.

Kevin Green, chief executive of REC, said that there were real worries about the state of the overall economy as the cuts made by the government started to have an impact.

"We are concerned about the UK jobs market. Growth is rapidly slowing as public sector job freezes start to bite and private sector employers' confidence remains fragile," he said.