Salaries hit nine-year high

The number of people finding a permanent job last month increased to a seven-year high, according to a new report.

And average salaries awarded to full-time workers were the best for nine years, a study by the Recruitment and Employment Confederation and KPMG found.

The research also showed that a shortage of skilled workers remained a "significant problem" for UK firms.

Recruiters reported strong demand for permanent staff in July, while, although the increase in demand for temporary workers slowed to its lowest rate for five months, it was still said to be "robust."

Helen Reynolds, acting chief executive of the Recruitment and Employment Confederation, said: "This month's report shows that permanent placements are growing faster than ever as we enter the traditionally quiet summer months. This must act as a spur to the Government to further their skills strategy. Demand for skilled workers in engineering and construction in particular must not be ignored.

"It is interesting to note that demand for temporary staff continues to grow. It is vital that attempts in Brussels to re-start the Agency Workers Directive do not harm the opportunities that temp work gives people to get into work and the flexibility that employers clearly demand."

Michael Carter of KPMG, added: "July's survey results continue to reflect a buoyant labour market. The availability of staff has deteriorated at the fastest pace for over two years and employers need to continue to be creative in their recruitment strategies.

"With growth in the labour market population slowing down, due to the declining birth rates since the 1960s, it is increasingly important for employers to have attractive graduate recruitment programmes to find and retain the best candidates of the estimated 230,000 who left university in 2007."

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