Jobs market bucks gloom in recession

BRITISH companies are planning to hire staff in growing numbers in the coming months as the ‘extraordinary’ jobs market defies the recession.

A survey by recruitment firm Manpower today showed the outlook for jobs is the strongest it has been for four years.

It said businesses of all sizes are taking on workers despite the country languishing in the longest double-dip for more than 50 years.

James Hick, UK managing director of Manpower, said 2012 was turning out to be an ‘extraordinary year for jobs’.

He said: ‘We’ve been saying that the jobs market is heading in the right direction since the beginning of the year. Understandably this has been met with scepticism because of the disappointing GDP figures.

‘However, in recent months the official employment statistics have started to catch up with our predictions. Over 300,000 jobs have been created this year – that’s a good year’s worth already.

‘The good news is that the UK jobs market is set for a further boost for the remainder of 2012.’

Unemployment has risen by 93,000 to 2.56m or 8pc since the Coalition came to power in May 2010. But the number in work has risen by 501,000 to 29.48m in that time – just 96,000 lower than the pre-recession peak recorded in early 2008.

Official figures published tomorrow are expected to show another fall in unemployment and a further rise in employment over the summer.

Charlie Bean, deputy governor of the Bank of England, has described the surge in jobs at a time of recession as ‘an economic puzzle’.

George Buckley, chief UK economist at Deutsche Bank, said: ‘Since the onset of the recession, the labour market has proved more resilient than might have been expected in light of economic weakness.

‘The result is that we are faced with a productivity puzzle – weaker output per head and per hour worked than in the aftermath of previous UK recessions.’