LONDON, July 8 (Reuters) - The collapse in Britain's labour
market eased only slightly last month, according to a survey on
Wednesday from the Recruitment and Employment Confederation
(REC) industry body which warns that a "jobs crisis" is
underway.
The figures from REC and accountants KPMG underscore the
challenge facing finance minister Rishi Sunak ahead of an update
to parliament, due around 1130 GMT, on measures to support
workers through the aftermath of the coronavirus pandemic.
REC said demand for staff continued to fall and at 31.9 in
June - up from 19.1 a month before - it remained well below the
50 level that represents an increase in hiring.
"This is now a jobs crisis," Neil Carberry, chief executive
of the REC, said. "Rishi Sunak should use today's Summer
Statement to boost job creation, with a cut in National
Insurance designed to retain jobs and boost hiring."
The supply of available workers soared in June by the
largest amount in more than a decade, according to the survey,
which is based on responses from around 400 recruitment
companies.
Last month the Bank of England said there were some signs
the economy had picked up by more than it had initially
expected, but added that a rise in unemployment could be worse
than it had thought.
On the latter front, the REC survey is unlikely to reassure
BoE officials.
"While there are signs that the worst declines are behind
us, today's figures show that it will be a while yet before we
see job placements growing month on month," Carberry said.
(Reporting by Andy Bruce, editing by David Milliken)