Demand for staff has reached a three-year high and growth in permanent staff placements has reached the fastest rate for over two years, according to research from KPMG.

The firm's Report on Jobs, produced in partnership with the Recruitment and Employment Confederation, shows that a number of indicators have turned positive in the last few months.

As well as permanent staff appointments rising at fastest pace since April 2011, the survey also reports temporary/contract staff billings showing the strongest increase in seven months.

There were sharper increases in demand for both permanent and temporary workers, while permanent staff salaries rose at the fastest pace for almost two years. Temporary/contract staff pay growth also quickened, reaching the sharpest since March 2008.

Public sector permanent vacancies rose for the first time in six months during June, while public sector temporary/contract vacancies were unchanged from May. In the private sector, both permanent and temporary/contract vacancies increased at the fastest pace since data were first available in December 2011.

Bernard Brown, partner and head of business services at KPMG, said: 'It's often said that things happen "in threes" and the latest jobs data has provided the hat-trick, complementing positive reports about the services sector and UK GDP.'