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UK temp market has "bouncebackability", survey finds

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Job vacancies continued to increase in September, with the rate of growth accelerating to a 13-month high, says the latest monthly report by The Recruitment and Employment Confederation (REC) and KPMG published today.

Demand for both permanent and temporary workers rose at faster rates during the latest survey period.

The REC/KPMG Report on Jobs September 2012 showed that job postings were up from 53.1% in August to 54.2% in September. It also showed that job vacancies were up 3.1% on the same period last year.

REC chief executive Kevin Green said: "This month's figures show that the temporary labour market has boucebackability.

"The resilience of the UK labour market in the face of what official figures class as a double dip recession continues to be remarkable."

The report shows that temporary staff billings rose for the second month running, with the rate of expansion quickening to a 13-month high. Green commented: "This increase in the use of temps could be a sign of optimism among employers, and that they are gearing up for future growth.

"It certainly puts paid to any idea that changes to Agency Worker Regulations last year dissuaded British businesses from using temps as a vital component of their workforce."

He added: "The data provides encouraging signs for the economy, with demand for staff continuing to increase and candidate availability rising. However, we know that confidence is fragile and a big external shock could derail us from this promising course."

David Morel, director of recruitment firm, Tiger Recruitment said: "Over the past 12 months, the recruitment market has suffered as a result of a lack of confidence among employers. The Euro crisis is by a distance the single biggest contributory factor. Too many businesses are too scared to take on full-time staff.

"It is vital for the Government to come up with a plan that incentivises businesses to make hires. At the moment there is no evidence to suggest that the Funding for Lending Scheme is working.

"Small businesses feel exposed and underfunded. The Government needs to offer them a reprieve of some sort until the market returns to normality."

The Report on Jobs is a monthly publication produced by Markit on behalf of REC and KPMG. The report was collected via questionnaire from a panel of 400 UK recruitment and employment consultancies.