The number of short-term staff billings rose at its fastest rate in more than two years, according to the latest REC/KPMG Report on Jobs.

The report shows that permanent vacancies was only just weaker than February’s 31-month high, while temporary/contract staff vacancies increased at the sharpest rate since January 2008.

The availability of staff to fill job vacancies also continued to rise in April but these latest increases in both permanent and temporary/contract staff availability were slower than in the previous month.

Kevin Green, chief executive of the Recruitment & Employment Confederation, says: “May’s Report on Jobs highlights continued growth in both temporary and permanent employment, although the rate of growth has slowed slightly compared to previous months. The first test of the new administration will be to nurture the slowly improving but fragile jobs market.

“The incoming government must address two immediate priorities - stimulating jobs growth and reducing expenditure without creating a public sector recession through shedding thousands of posts.  Private sector employers have used short-time work, sabbaticals and pay freezes as a means of reducing costs while retaining high-performing staff. Innovative resourcing strategies will be equally crucial within the public sector.”