Employment index shows slowing demand for jobs

Demand for jobs slowed in the first month of 2008, according to the latest employment index.

Conducted by Big Four firm KPMG and the Recruitment and Employment Confederation, the survey revealed that the need for staff weakened, as did pay growth.

Director at KPMG, Alan Nolan, noted that although demand is slowing the results of the index still showed growth.

Employers are optimistic about the year ahead, he noted, as 'many companies are planning to take on an increased number of graduates this year.'

'Different sectors carry on being affected in different ways. Whilst workers in the construction industry remain in demand, investment banks are seeing a reduction in graduate salaries in a bid to level out the playing field,' he stated.

Following the quarter-point interest rate cut yesterday by the Monetary Policy Committee of the Bank of England, Mr Nolan added that further reductions in the base rate could be looming as financial and employment markets remain uncertain.