Public sector to hire more after 'over firing' Mark Cahill, managing director of Manpower, said: "We've noticed that a number of public sector organisations have begun recruiting again with renewed vigour. Again, don't be fooled - austerity is still the order of the day, but in their efforts to implement budget cuts there has been a degree of over-firing. In other words, in their zeal to cut budgets, too many people may have been laid off. At least 20,000 jobs have been created to deal with claims over mis-sold payment protection insurance (PPI), Manpower said. These were jobs created by big banks, it said, and did not include those created by companies acting as middlemen for claimants. The extra jobs were not a sign of a thriving banking sector, but were linked to the clearing up of mistakes from the past, Mr Cahill said. He expects the jobs boom created by PPI mis-selling to continue. "Within the last month alone, we have seen big names like Barclays and Lloyds massively raise the amount of money set aside to deal with PPI claims," he said. A whopping £11bn has already been allocated, and some commentators think that number could easily double. The consequence of this will not only mean cash in people's pockets, it will also translate into jobs. Elsewhere, the survey highlighted growth in the transport and communications sectors, which showed a positive balance of 12pc of employers were hiring. This was partly due to the continuing rise in internet shopping.