The CIPD/KPMG Labour Market Outlook has forecasted a private sector hiring surge.

People setting up a recruitment company are likely to benefit from a private sector hiring surge that is expected to minimise the impact of widely expected public sector job cuts.

According to the latest Chartered Institute of Personnel and Development (CIPD)/KPMG Labour Market Outlook, overall employment levels are set to grow due to this job creation by the private sector.

The quarterly survey revealed that the UK's emergence out of recession is now leading to better job prospects as for the first time since winter 2008, the overall net balance between employers planning to hire and those expecting to cut staff is now +5 per cent.

Commenting on the figures, Gerwyn Davies, CIPD public policy adviser and author of the report, said that "a growth of full-time jobs in the private sector" could continue if the global economy recovery carries on at the same rate.

"This will boost the prospects of the majority of private sector workers who no longer face the prospect overwhelming unemployment, pay freezes and lack of promotion," he added.

Recruitment professionals were recently encouraged by an insider not to be afraid to set up their own companies if they want to enjoy tax benefits.