A survey Wednesday showed higher starting salaries for permanent employees and rising numbers of vacancies in March, led by the privates sector. Permanent and temporary hiring growth in hiring slowed from the February 10 month high with permanent placements index falling from 62 to 59 per the Recruitment and Employment Confederation and KMPG monthly survey.
On the other hand permanent staff vacancies increased at its fastest rate since April of 2010 and contract staff and temporary vacancies also increased at the sharpest rate since July of 2007, increasing the demand for new hires of private sector companies. The increase in starting salaries for permanent hires are what was concerning but still below the survey’s 13 year average it accelerated at its highest pace in eight months.
As hundreds of thousands of public sector jobs are cut because of the government’s budget slashes, the government is relying on the private sector to create new hires to compensate for the thousands of jobs lost on the public sector. In January the unemployed reached its highest level in Britain since 1994, but in February the unemployment benefits claims dropped showing possible signs of a turnaround of fortune.