Increasing numbers of people are looking for work, but the number who are successful in finding new jobs is falling, according to research from KPMG.

This month's KPMG and Recruitment and Employment Confederation (REC) Report on Jobsrecorded 'solid improvements' in both permanent and temporary/contract staff availability.

The number of vacancies available to jobseekers rose again during July, but the latest improvement was the least marked for six months.

During the same period, there were further reductions in both permanent and short-term staff appointments, although in both cases the rates of decline have eased slightly since June. The steepest decline was registered in London, where short-term staff billings also fell.

Average starting salaries for people who did find permanent jobs increased modestly during July, according to the report, but hourly rates of pay for temporary/contract staff fell slightly.

While the number of job vacancies in the public sector fell further, KPMG says this was offset by higher demand from private businesses. The most sought after recruits were engineering and construction workers and medical staff.

Bernard Brown, partner and head of business services at KPMG, said: 'The rate at which employers are recruiting has decreased for the second consecutive month, and this suggests that there is still a high degree of uncertainty. The real story of recovery will also probably only start to emerge in the autumn as the true impact of the Olympics begins to emerge. Given that the latest data shows that the sharpest drop in permanent placements was registered in London, questions remain around how businesses in the capital will look to grow and expand after the summer lull in activity.'

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