Demand for both temporary and permanent staff in London is set to continue this year, according to the latest Bank of Scotland (RBS) London Market Barometer report.

December’s figures posted the highest level of activity for the whole of 2005.

The nursing/care/medical sector recorded the strongest demand for both temporary and permanent workers.

Permanent staff salaries recorded the strongest rate in six months with nearly 15% of recruitment consultancies reporting significant rises compared to November.

Bank of Scotland group economist, Tim Crawford said: “It is clear that the labour market in the capital has entered 2006 on a firm footing.

“On the downside there has been a fall in staff availability which could hinder jobs growth near term and put some pressure on wages.

“Workers in the healthcare industry are most in demand at the moment, however demand for staff rose across all key industries in London last month.”