The Recruitment and Confederation and KPMG’s monthly report on jobs found that growth in permanent placements reached a 26-month high.

However, it also found that the continuing skills shortage means that employers are offering higher salaries in order to attract the right staff.

Michael Carter, people services partner at KPMG, says: “This month's figures show continuing significant growth in both permanent and temporary placements, but even this has not stemmed the demand for staff. Skills shortages continue to be seen, with the result that employers are paying more for 'quality' candidates, resulting in robust pay inflation. The figures are at odds with the rising official unemployment figures, which suggests that labour is available, but not with the skills required.”

For full details of the report see Recruiter.