British recruiters filled permanent vacancies at the fastest rate in six months in January, according to a survey released yesterday, pointing to growing confidence among employers.

"Permanent staff placements and temporary/contract staff billings both rose at faster rates in January," the Recruitment and Employment Confederation said in a statement.

The REC/KPMG permanent placements index rose to a six-month high of 57.4 in January from 54.9 in December. The temporary index rose to a seven-month high of 56.5 from 52.8 the previous month.

Index levels above 50 indicate net hiring among the panel of 400 recruitment companies polled each month.

Britain's coalition government hopes the private sector will be able to create extra jobs to sustain growth as spending cuts begin to bite this year.

"The latest figures are encouraging," said Bernard Brown, partner and head of business services at accountancy firm KPMG, which sponsors the survey.

"However, it is too early to speculate whether these are the signs of a private sector-led recovery. With looming public sector job cuts, the VAT (sales tax) rise and slowing economic growth, the UK job market is likely to remain volatile over the coming months," he added.

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