The recruitment industry has returned to growth, achieving a record level of turnover. That was the finding of the seventh annual industry survey undertaken by the Recruitment and Employment Confederation (REC).

Total industry turnover for the year to March was £24.83bn, up from £23.48bn a year earlier.

Announcing the results, Gordon Cullen, head of recruitment industry services at survey sponsor Ernst & Young emphasised the contribution of the temporary market. He contrasted this with the weak temp market in France and Germany.

Secretarial and clerical positions accounted for 24% of the total, topping the temporary league.

Total turnover in the temp market rose to £21.56bn from £20.27bn. However, it was still below the £22.81bn peak achieved in the year to March 2004. Temporary sales per consultant rose to £610,800, from £569,600.

Although the value of permanent recruitment deals surged from £1.7bn two years ago to £3.21bn in 2004-05, the latest figures showed slower growth, rising to £3.28bn.

The analysis was based on 617 valid questionnaires out of more than 13,000 despatched.

REC chief executive Marcia Roberts said: "The fortunes of the industry are inextricably linked to the overall health of the UK economy." She pointed to strong GDP and similar indicators.

Roberts said: "These results are cause for celebration but I would ask everyone in the industry to use this success as an opportunity to 'raise the bar' to an new level."

Brian Wilkinson, director of Vedior, said gross margins remain well below their peak, claiming the growth of master vendor contracts had hurt some agencies.