The number of people placed in permanent jobs rose at the slowest rate in over two-and-a-half years in February, according to the latest Report on Jobs survey published by the Recruitment & Employment Confederation (REC) and accountants KPMG.

Staffing levels continued to expand in services and construction, but manufacturing employment fell for the eleventh successive month, the report found.

The availability of candidates for permanent vacancies continued to decline in February, suggesting ongoing skill shortages.

In contrast, temporary/contract staff availability rose for a second consecutive month.

Although average wages and salaries continued to rise in February, pay inflation was weaker than in the previous month.

Permanent staff salary inflation cooled to a four-month low, while temp pay rose at the slowest pace in five months.

Michael Carter, people services partner at KPMG, said: “The strongest improvements were for staff in office-based jobs such as IT and computing, accounting and financial, engineering and construction, and this growth is mirrored in temporary roles. However, the rates of growth for all appointments, both permanent and temporary, slowed to a two and half year low in February, and we anticipate that this trend may continue over the next couple of months."

Gareth Osborne (pictured), REC managing director, said: "This month's Report on Jobs should be taken as an early warning sign, like an amber light on the nation's fuel gauge.

“A slowdown in UK recruitment points to a job market on the cusp of change. When combined with other key economic indicators such as low consumer confidence and rising consumer debt, the sustained success of the UK labour market hangs in the balance.”