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Improvements for UK job market

Evidence of an improvement in the jobs market was revealed today, but with only a slow increase in the number of temporary and contract placements.

The Recruitment and Employment Confederation (REC) said the growth in permanent jobs |accelerated in February, reaching its strongest level for almost |three years. Demand for staff has grown for five consecutive months, according to a study of 400 recruitment consultancies.

Kevin Green, chief executive of the REC, said: “The UK jobs market is continuing to improve. Increasing employer confidence has resulted in the best performance we've seen in permanent employment for two-and-a-half years.

“High-end sectors such as IT are showing particularly strong growth and we are also seeing significant increases in demand for admin and back-office support.

“There are indications that recruitment in the public sector could drop off fast. A new approach to public sector resourcing is now critical and will have a direct impact on the wider employment outlook.

“We question whether the public sector has the right capability in place to lead the necessary transformation and put in place staffing structures that will keep costs down while improving public services.”

Bernard Brown, of KPMG, which helped with the research, added: “The latest figures seem to confirm that the UK jobs market is on the road to recovery. Permanent job placements are growing at their fastest pace since July 2007.

“Sectors such as IT and computing as well as engineering and construction that were particularly hit by recession are clearly on the rebound. However, this all comes with one big warning — the impact of the inevitable public sector recession on the jobs market has yet to be felt and will be played out over the next six to 12 months.”