Employment survey adds to cautious optimism

There was a slight growth in both permanent and temporary appointments during August, a monthly survey of recruitment agencies has revealed.

And the Report on Jobs - jointly published by KPMG and the Recruitment and Employment Confederation (REC) - also recorded a slowing-down in the rate at which the number of job vacancies fell.

It is the first time in 17 months that the survey has shown an increase in permanent appointments, while the last recorded increase in temporary appointments was in July 2008.

"This month's report shows signs that the UK jobs market is improving," said REC chief executive Kevin Green.

"It seems that employers are becoming more confident in their hiring decisions with an increase in permanent recruitment and growth in temporary placements for the first time in over a year."

The results are among the latest indications that the economic outlook may be improving. At the end of August, the Office for National Statistics revealed that the economy contracted by 0.7% in the second quarter - less than the forecast 0.8% decline.

This week, British Chambers of Commerce (BCC) chief economist David Kern said that the upturn in the economy had "probably already started", as the group published its September economic forecast.

And commenting yesterday on surprisingly strong manufacturing figures, he added: "The larger than expected increase in July manufacturing output supports our assessment that the third quarter of the year may show a return to economic growth."

"However," he warned, "the manufacturing sector is still facing serious problems and longer-term comparisons show big falls."

IMAGE: Martin Keene/PA Archive/Press Association Images