Recovery still 'jobless'

The UK continues to be hit by a "jobless recovery" from recession as employment "reshapes" in the wake of the downturn. A survey of 2,100 firms by the employment group Manpower showed only "mild optimism" about job prospects for the coming months.

Manpower said there was now a need for radical reform in the public sector as it faced pressure to cut spending. Its managing director, Mark Cahill, said: "Workforce transformation is vital to the future success of the public sector and the challenge for employers is to economise, optimise and transform, without compromising frontline services."

Employers in finance and business services were the most positive about job prospects. Firms in the South-east were most optimistic about employment, while those in the West Midlands were least optimistic. Employers in London were slightly less hopeful of taking on new staff than they were earlier this year.