UNEMPLOYMENT will start to FALL later this year despite thousands of public sector job cuts, it was claimed last night.

A report for city accountants KPMG said the number of full-time jobs rose in February at the fastest pace for ten months.

Private sector firms are hiring again – with a boom in IT, computing, engineering and construction.

Meanwhile, the number of temp positions was the biggest in nearly three years. Up to 75,000 new jobs were created in January alone – helping to make up for the fall in nursing, social care and civil service posts, said the authors Markit, who polled 400 recruitment consultants.

Markit economist Jack Kennedy said: “There are tentative signs of a pick-up over the next six to ten months. If these trends continue then we do think unemployment will start to decline towards the end of this year.” Doom-mongers claim unemployment could rise from 2.5million to 3million as spending cuts hammer the public sector.

But recruitment site Monster.co.uk revealed the number of jobs is up nine per cent in just one month – and is 12 per cent up on this time last year.

Manufacturing and construction jobs are up by nearly a quarter in the last year.

Spokeswoman Isabelle Ratinaud said: “Job seekers can feel confident there are an increasing number of roles available.”