Good News Britian: Labour market stretches for the line at the end of a golden year We are picking up a slight decline in private sector hiring intentions for the next quarter - albeit down from a surprisingly high net index of +28 last quarter. However, that is being balanced by an improvement in public sector employment intentions. More employers are still expecting to shed jobs than hire. But some public sector employers, having front loaded job cuts, look like they are beginning to hire again to help maintain service quality or staff new innovations and government priorities. Overall, the employment market is looking set to round off a golden year for Britain with some more good news. However, we must also acknowledge that the picture is not rosy for all. Unemployment remains high. And the employment growth we have seen is at least in part being driven by downward pressure on real wages. Our report forecasts annual pay rises at just 1.7% for the next period - likely to remain below inflation. Part of the rise in employment has also been driven by disproportionately large increases in temporary and part-time jobs. We're forecasting this trend continuing for the rest of the year, although with the proportion of the increase in part-time and temporary jobs falling slightly in favour of more full-time and permanent jobs compared with recent trends. Could this possibly reflect a rise in confidence on the back of recent growth figures? All in all, though, the employment market has to be counted as a 2012 success story. The unemployment rate has fallen to 7.9% from 8.4%, while net employment growth has grown by almost half a million. This recovery will be a long, gruelling marathon, not a sprint. But if growth takes hold, employment growth continues and more temporary roles are converted to permanent ones, this could be a winning run that continues into 2013.