Wages continued to rise robustly in October, according to the monthly Report on Jobs by the Recruitment & Employment Confederation (REC) and KPMG.

It said permanent staff salaries increased at a similar rate to September's five and a half year high, while inflation of temporary staff pay hit a 22-month high.

The survey also found that growth of permanent staff placements during the month reached a 30-month high, driven by strengthened demand for staff and easing skill shortages. However, temp billings rose at the slowest pace for six months.

Marcia Roberts, chief executive officer at the REC says the easing of skills shortages is likely to prove temporary. “As we approach the festive season, the retail boom will see a rapid increase in demand for staff, particularly temporary workers who provide an invaluable flexible resource at this time of year,” she added.