Recession has 'changed employment landscape'

The recession has created a new employment landscape, an employment trends survey has suggested.

The survey, by the Confederation of British Industry (CBI) and recruitment consultants Harvey Nash, shows that employers have had to dramatically change the structure of their business in order to survive the recession.

The latest official statistics show that unemployment rose to 2.26 million in the first quarter of 2009, and the CBI predicts that this will peak at over 3 million next spring. However, the survey suggests that many firms have employed a significant degree of flexibility in order to preserve jobs where they can.

Some 30% of respondents said that they had frozen recruitment across the whole of their firm, while 53% think that it will take up to two or more years for recruitment levels to return to those seen in 2007.

With this freeze in recruitment, 38% have put a halt to graduate recruitment programs. However, one-in-six still provide work experience in the form of unpaid internships and placements.

Many have also chosen to reduce working hours, with 45% increasing flexible working, 33% cutting their use of agency staff and 43% reducing paid overtime.

Employers are now calling on the Government to relieve pressure on the employment market by freeing up credit and halting new employment regulation.

John Cridland, CBI deputy director-general, said: "This has been a particularly bruising recession, but one of its most positive and striking aspects has been the commitment of many businesses and their staff to work together to try to trim costs and save jobs.

"The UK's flexible labour market has proved a huge asset during these testing times, and flexible working changes have enabled employers and staff to create leeway on working hours."