McDonald's-style contract flexibility could be the key for recruiters at a time of rising unemployment and fewer vacancies.

A version of the headline-grabbing McDonald's scheme, allowing groups of people such as family members or friends to share a single job, has been tipped as a key initiative for recruiters.

Recent labour market statistics make grim reading. Latest figures show that unemployment continues to rise, with the number of people out of work and claiming benefits growing by 7,200 to 909,100 in November - the eleventh monthly rise in a row. The number of vacancies in December was also down, falling 12,700 from the previous quarter.

Chris Martin, professor of economics at Brunel Business School, said that job-sharing could help alleviate the predicted tough times for the unskilled worker market.

“Hiring is low, and productivity growth has dropped rapidly,” he said. “Reliability is the key in this sector. Recruiters need to look at how people can juggle jobs more effectively, even that means some form of job-sharing.”

Andy Hogarth (pictured), managing director of industrial recruiter Staffline, believes that the sector will need adaptability to survive.

“I believe unemployment in the manufacturing sector will only continue to rise. Some sort of job-sharing could certainly work, either on the shop floor and with production line work,” he said.

The City is proving an exception, however, and recruiters are optimistic for the year's prospects. According to financial recruiter Morgan McKinley, job numbers increased by 52% in the first two weeks of January, with candidate numbers up 43% compared with January 2005.

City vacancies increased by

5.5% in December 2005 compared with December 2004, with 3,654 jobs coming on to the market.

“There has been a lot of merger and acquisition activity in 2005,” said Morgan McKinley chief executive Rob Thesiger. “There is a need not only for accountants, but financial professionals at all levels.”