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IT jobs jump shows hope for UK economy

Redundancy fears remain

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UK workers still fear losing their jobs even though survey data is starting to show an improvement in both permanent and temporary positions.

KPMG's February jobs survey found the fastest increase in permanent positions since July 2007. Around 43 per cent of companies said they were increasing permanent jobs. And temporary billings from agencies continued to rise, albeit at a slower rate.

Overall staff vacancies rose for the fifth month in a row.

Demand for permies was strongest in the clerical and admin sector but IT staff were in second place.

Rates for temps showed a small increase in February but permanent salaries showed more growth, possibly fuelled by shortages of some skills and increased confidence from candidates pushing for better salaries.

Despite all this good news there is still widespread job insecurity - but not as much as this time last year.

Workers fear job cuts could still be in the pipeline.

The other concern is watching earnings shrink in value - even though consumer price inflation is at 3.5 per cent most private sector workers have seen their pay frozen. The Office for National Statistics said in December that earnings grew 0.8 per cent year-on-year, but this was entirely down to the public sector where pay grew 3.7 per cent.

KPMG's Report on Jobs is produced every month with Markit Economics. ®

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