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Jobs market continued to improve in September

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September showed further growth in permanent and temporary employment, according to the Recruitment and Employment Confederation and KPMG.

The report on jobs shows the increase in job advertisements rose faster in September than it did in August and September's drop in job vacancies was the weakest for the last 16 months and demand for temporary staff rose for the first time in 15 months.

Permanent staff salaries are also falling at a slowest rate for a year.

Kevin Green, Chief Executive of the Recruitment & Employment Confederation, said: "More good news on the jobs market as recruiters report a rise in both permanent and temporary placements for the second consecutive month. But the labour market is still very fragile and we are concerned that recovery from this recession might be ‘jobs light'. One of the reasons for this is that employers have retained more staff during this recession than previously.

"This labour hoarding means companies will be able to respond to increases in demand without hiring new employees. This could be bad news for the nearly one million young people under 24 currently without work."


And Bernard Brown, Partner and Head of Business Services at KPMG, added: "The latest report brings more encouraging news for the UK jobs market. After declining for 16 months in a row, the number of people placed in permanent jobs has risen for the second consecutive month.

"This provides further evidence that the bottom of the economic cycle has been reached. But the prospect of a twin-track economy looms ever larger. While the private sector recovers, large-scale job losses in the public sector become ever more likely as the government finally tackles the huge budget deficit."