Unemployment fears grow despite UK's recovery

Demand for staff has increased, but the UK could still be heading for a "jobless recovery" from recession, according to a report today.

The Recruitment and Employment Confederation said vacancies grew last month but at a slower rate than in April. The number of permanent staff placements by recruitment firms increased for the 10th month in a row.

The confederation warned that with cuts being made across the public sector, British workers could find it hard to get a job despite the economic recovery.

Kevin Green, chief executive of the REC, said: "Job vacancies continue to grow but at a slower rate than previous months.

"On the upside, professional recruiters have identified a number of job categories - including accountants, HR professionals, software developers and chefs - where suitable candidates are in high demand.

"However, we remain concerned about the overall employment outlook as public sector recruitment freezes start to bite. With fewer opportunities in the public sector and jobs growth in the private sector improving only very slowly, predictions of a jobless recovery are looking more likely.

"In this environment, there are real fears for the one million young people not in work or training who will find it increasing difficult to get on the jobs ladder. This month's jobs data further underlines the need for urgent action if we are to avoid a new lost generation of workers."