Recruitment in the U.K. quickened in the second month of the year, boosting hopes that the private sector will be able to absorb a substantial part of public sector layoffs, according to Financial Times. On Thursday, the Recruitment and Employment Confederation and KPMG reported that the permanent hiring index increased to 62.7 in February from 58.2 previously, which is the highest level in 10 months. The index for temporary hiring added over four points to reach 61.5, which is the highest since May 2007.
The data suggest to the REC’s chief executive, Kevin Green, that “The U.K. now has a two-speed labor market,” referring to government cutbacks. Green added, “The private sector continues to hire in increasing numbers while the public sector is shedding jobs.” The group expects to see unemployment increase in the coming months, but forecasts that unemployment will slow in the second half of the year and into 2012. The report also found that vacancies were at the highest point in 10 months.