Both permanent and temporary billings recorded stronger rates of growth in December, according to the latest Recruitment and Employment Confederation (REC) and KPMG ‘Report on Jobs’.

The data shows a fifth consecutive month of increased recruitment activity with permanent placements accelerating to their sharpest levels since July 2007, while temporary/contract staff billings rose at the fastest pace for two-and-a-half years.

Recruiters also reported an increase in vacancy levels in the month and while hourly rates for temporary/contract employees fell for a 15th month in a row, average salaries for permanent jobs rose for a second consecutive month.

While the availability of candidates to fill roles continued to rise, both permanent and temporary/contract staff availability were the least marked for one-and-a-half years.

Kevin Green, chief executive of the REC, says: “As we head into 2010, the recovery of the UK jobs market is accelerating. Employer confidence is increasing and vacancies are on the up – with the fastest growth in permanent jobs since July 2007. Temporary and contract placements also rose at the sharpest pace for 30 months which underlines the crucial role that flexible working models will play in helping jobseekers back into work.”