Bumpy road ahead could benefit freelancers

Unemployment fell by 49,000 in the three months to June, according to the latest data from the ONS, which was released on Wednesday.

Kevin Green from the REC said he expects to see the private sector absorbing much of the public sector fallout once the government's spending cuts begin to hit. This will lead to a flat jobs market which shouldn't significantly increase unemployment levels.

The government needs to help private sector enterprises create jobs and this could be achieved by lowering business taxes and reducing red tape, he added.

Chris Williamson, the chief economist at Markit, pointed out that George Osborne's austerity measures have caused many employers to rethink their hiring plans with the result that a lot of firms are holding back on recruiting new staff.

Meanwhile, there has been a big increase in the amount of part-time workers, no doubt because businesses do not want to commit to full-time contracts while this general air of uncertainty remains.

The majority of recruitment is in the manufacturing sector whilst the service sector and construction are showing renewed signs of weakness. Williamson doesn't think we're heading for another recession but he acknowledges that the road to full recovery will be bumpy.

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