UPDATE 2-Recruitment firm Hays sees pick-up in banking

* Strong recovery in Asia Pacific, Britain still tough

* Demand for banking and accounting jobs strong

* Private sector demand helps offset public sector decline

* British recruitment still weak outside southeast

(Adds comment from finance director, background, more details)

LONDON, July 8 (Reuters) - Staffing firm Hays (HAYS.L) reported a pick-up in activity on Thursday, particularly in the banking sector in Asia because of people changing jobs, but overall employment levels have not risen.

The British-based firm, which operates in 28 countries and launched offices in India and Russia in 2009, said like-for-like net fees rose 8 percent in the three months to end-June compared with a year ago, supported by strong growth in Asia.

In Britain net fees were down 6 percent on a year ago and remained broadly flat compared with the previous quarter because of a lack of jobs in the public sector, a target of government spending cuts.

Hays shares were up 5 percent at 95.40 pence at 0906 GMT. Shares in rival white collar recruiter Robert Walters (RWA.L) were up 3.5 percent at 241 pence, and shares in Michael Page International (MPI.L) were up 3.4 percent at 381 pence.

Hays' overall positive net fee growth was largely down to more people wanting to change jobs and employers needing to find replacements, rather than an increase in job creation, Finance Director Paul Venables told Reuters.

"Candidate confidence has increased ... the worst of the downturn is over and they are now looking to further their careers," Venables said.

"The acid test for us is often accounting and finance ... we're seeing a very strong recovery there. The strongest areas globally have been in the banking sector," Venables said.

In Britain, London still represents the lion's share of white collar opportunities, but Venables said there had been a recovery in areas surrounding the capital.

"The recovery has gone across the whole of the home counties. The only weaker areas in the recovery are in the north of England and Scotland," Venables said.

UK PUBLIC SECTOR WEAK, EYES GLOBAL GROWTH

In the public sector construction jobs had been worst hit because of a dearth of large building projects, while in Australia Hays had seen a recovery in demand for workers in the mining sector, Venables said.

Recruiters suffered badly in 2009 in what Hays has said was the toughest market on record as companies around the world slashed costs to mitigate the effects of the economic downturn.

The company's international business now accounts for just under 60 percent of its overall net fees, while its British market represents just under 10 percent of fees.

Hays, which last year placed 50,000 people in parmanent jobs and 270,000 people in temporary work, plans to open new offices in Mexico, Argentina and the United States, Venables said.

Analysts at KBC Peel Hunt raised their recommendation on Hays' stock to 'hold' from 'sell'.

Robert Walters said on Wednesday it had also seen a bounce back in demand for financial sector workers in Asia and in Australia's minerals and mining sector.

Michael Page International is expected to report on its performance for the second quarter on Friday. (Editing by Greg Mahlich)