The UK jobs market is starting to show signs of recovery, according to a survey of recruitment agencies.

The research, produced by Markit Economics, finds “marginal increases” in both permanent and temporary appointments in August.

For permanent staff, this is the first increase since early 2007.

“This is first time we have seen really positive news for the UK jobs market in 17 months,” said Bernard Brown from KPMG, co-sponsor of the survey.

The survey is said to be the most comprehensive guide to the UK labour market.

‘Confident’

The report also found that the decline in the number of vacancies is easing, and that the decline in pay is the slowest in 10 months.

“It seems that employers are becoming more confident in their hiring decisions,” said Kevin Green, chief executive of the Recruitment & Employment Confederation, the survey’s other co-sponsor.

However, the report said it was too early to say whether the encouraging figures signalled an end to the recession.

The latest jobless figures showed that the number of people out of work in the UK has risen to its highest level since 1995.

Unemployment increased by 220,000 to 2,435,000 in the three months to June, taking the jobless rate to 7.8%.

Consumer confidence

Separately, Nationwide’s Consumer Confidence index showed that UK consumers are the most optimistic about the future they have been in over a year.

The index rose to 63 in August from a revised 61 the previous month, the highest since May 2008.

The survey suggests consumers have a greater willingness to spend as economic data suggests the UK recession may be approaching its end.

“[This] is no surprise, as a number of key economic indicators continue to show that we may have reached the bottom of the current recessionary cycle,” Nationwide’s chief economist Martin Gahbauer said.

On Tuesday, respected research institute the National Institute of Economic and Social Research said the UK economy grew 0.2% in the three months to August.

And UK manufacturing output rose at its fastest rate in 18 months in July, helped by a sharp pick-up in car production, official figures showed.

Recovery risks

But the Nationwide survey suggested consumers are still downbeat about their present employment and economic circumstances, with more than 70% describing it as “bad”.

On Tuesday, the British Retail Consortium said retail sales fell in August after two months of increases, casting doubt on a prolonged recovery in consumer spending.

Last week, official figures showed that he rate of contraction of the UK economy in the three months from April to June was 0.7% from 0.8% compared with the previous quarter – less than previously estimated.

But the annual drop of 5.5% remains the biggest since records began in 1955.

The UK has been in recession since March 2008.

Courtesy of BBC News