The rate of decline in permanent placements slowed almost to a halt in September, with temporary staff billings rising for the second consecutive month and the rate of expansion quickening to a 14-month high, finds the Recruitment & Employment Confederation (REC)/KPMG 'Report on Jobs'.

The report is based on a survey of 400 recruitment and employment consultancies, and finds a fifth consecutive month of increased candidate availability, while job vacancies increased at a 13-month record pace.

Pay rose marginally for both permanent and temporary staff, the report also finds.

For the second month in a row, nursing, medical & care remained the most in-demand category for both permanent and temporary staff.

Bernard Brown, partner and head of business services at KPMG, comments: “It must be hugely encouraging for jobseekers to see figures suggesting that demand for staff is on the increase, particularly as the data now shows a 13-month high. 

“However, the jobs market cannot be viewed in isolation as any sustainable improvement in employment remains dependent on the growth of the economy as a whole… If we are to see sustained growth in employment demand, we need to get growth back into the economy itself. That is why the picture remains fragile, and a jobs recovery is by no means assured.” 

REC chief executive Kevin Green adds: “This increase in the use of temps for the second month in a row could be a sign of optimism among employers, and that they are gearing up for future growth. It certainly puts pay to any idea that changes to Agency Worker Regulations last year dissuaded British businesses from using temps as a vital component of their workforce.”