Hope of recovery bolstered by increase in hiring rates
A survey of recruitment companies reported in the Financial Times today demonstrated that hiring had risen at its fastest rate for at least six months as employers gained confidence in January.
Some economists cited the findings as further evidence that the recovery was maintaining momentum though there were warnings that the job market would remain volatile.
The survey of 400 recruitment agencies was carried out by the Recruitment and Employment Confederation and KPMG and indicated an acceleration in both permanent and temporary placements as employers reported being busier.
A separate survey of online job boards by Monster showed a 15 per cent increase in vacancies on last year, with a 34 per cent rise in job opportunities in information technology.
New vacancies in the City rose by 11 per cent compared to this time last year according to financial recruiter Astbury Marsden
Bernard Brown, KPMG partner, said that the figures were encouraging with employers accross all sectors expanding their workforce. This accords very much with the our experience at Lexington Gray - the first two months of this year has seen a sustained increase in interest from clients looking to recruit in the legal sector both in-house and in private practice.
Mr. Brown went on to sound a note of caution however, warning that it was 'too early to speculate whether these are the signs of a private sector led recovery. With looming public sector job cuts, the VAT rise and slowing economic growth, the UK job market is likely to remain volatile over the coming months.'
Simon Ward, chief economist at Henderson Global Investors was more upbeat stating that the surveys showed that 'the economic recovery remains on track and corporate animal spirits are returning.' Mr. Ward believes that increased private sector hiring should offset public sector job losses so that employment should rise during the first half of the year.
Employers in need of additional support to meet a growing demand for their goods or services but who are still nervous about increasing permanent headcount while the market and outlook remain volatile, may find that hiring staff on fixed term contracts is a neat solution to their problem. It seems to work for our clients.
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