The jobs market is looking buoyant once more, with staff placements and vacancies both showing strong growth, according to the latest research from KPMG and the Recruitment and Employment Confederation (REC).
Their monthly Report on Jobs shows permanent placements in July increased at the sharpest rate since March 2010, while temp billings were up at the fastest pace in almost two-and-a-half years.
As well as more people moving into jobs, there was a further rise in demand for staff during July, with overall job vacancies increasing at the strongest rate in six years.
Pay was also on the up, as the rate of inflation of permanent staff salaries quickened in July to its highest for over two years. Temp pay rates rose at the sharpest pace since January 2008 and starting salaries reached their highest levels for 26 months.
Recruitment consultants indicated a decline in the availability of candidates to fill job vacancies during the latest survey period, particularly when it came to temporary staff.
All nine categories of short-term staff posted improved levels of demand, although the accounting/financial workers sector demonstrated the weakest expansion. The healthcare sector posted the fastest growth, followed by construction. Engineering workers were most in demand as permanent recruits, while the slowest vacancy growth was recorded for blue collar staff.
Bernard Brown, partner and head of business services at KPMG, said: 'High levels of demand for staff were signalled across every sector we analysed and the same can be said across each region of the UK. In a sign of the surge in confidence, the latest figures also represent the sharpest increase in permanent placements for more than 3 years and the biggest growth in demand for six.'
'If the current trend continues employers will, however, be faced with another conundrum. For some time staff have sat tight refusing to move when job security was low. Now the best staff will be looking for better offers so employers will need to strike a balance between recruiting new blood and retaining their best employees,' Brown warned.
