Britain now has a two-speed jobs market with private firms hiring while the public sector loses staff

imageDemand for permanent staff is increasing, according to a new survey. But the need for temporary staff is most encouraging with the most positions available since May 2009.

The report by the Recruitment and Employment Confederation (REC) and KPMG revealed that there are two different employment stories – in the public and private sectors.

Kevin Green, the REC’s chief executive, said: “The UK now has a two-speed labour market. The private sector continues to hire in increasing numbers while the public sector is shedding jobs.

“This is highlighted in the latest Report on Jobs which reports that the nursing, medical and care sectors have significantly declined from a year ago. In comparison, the IT and computing sector saw accelerated growth over the same period.

“We anticipate that unemployment will increase over the spring, summer and autumn before very slowly starting to decline at the very end of this year and into 2013.

“The scandal within the UK jobs market is that nearly one million young people – over 20 per cent of 16 to 24 year olds – are not in work or education.

“Young people seem to be excluded from the growing number of vacancies as employers remain conservative, favouring experience over potential.”

And he went on to call for the Government to establish measures to boost employment chances for younger people.

Higher staff appointments were underpinned by robust growth of demand for staff in February. The overall level of job vacancies increased at the strongest rate since April 2011.

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