UK jobs market 'on way to recovery'

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A study of recruitment firms found the biggest increase in permanent placements for two years, while temporary jobs rose at the sharpest rate for 16 months.

The Recruitment and Employment Confederation (REC) and KPMG said a survey of 400 companies found a rise in job vacancies in October.

REC chief executive Kevin Green said: "These figures show that the UK jobs market is on the road to recovery, with signs of improvement for the third month in a row. The demand for permanent recruitment is returning as employers start to hire people at an accelerating rate.

"Confidence is on the rise with permanent placements increasing at their fastest rate in two years and growth of temporary staff appointments at a 16-month high.

"Based on the latest findings, we anticipate that unemployment will not reach three million in 2010 as some predicted. This again highlights the benefits of the UK's flexible labour market and a balanced attitude towards employment legislation in terms of keeping people in work."

Bernard Brown, of KPMG, added: "The UK jobs market looks healthier now than at any time in the last two years which is, of course, encouraging news. Sectors like accounting and banking lead the recovery and we may well have reached the tipping point into growth, driven by returning confidence in the private sector.

"However, we are still to see the impact of the looming public sector recession on the jobs market, which will play out over the first 12 months of a new parliamentary term."