The slump in the recruitment market may have bottomed out according to the latest figures released in the REC’s Report on Jobs.

The survey, conducted in association with Andersen, revealed that, while agencies recorded a drop in the number of permanent placements in January for the ninth consecutive month, the rate of decline eased for the third month running to record the lowest fall since May.

Temporary agencies enjoyed a good month in January, reporting an increase in billings for the first time in four months.

The good news was reflected in figures for recruitment advertising, which recorded the lowest fall for 12 months.

Further evidence of green shoots was provided by an increase in permanent salaries for the first time since the third quarter of 2001.

Commenting on the figures, Brett Walsh, head of UK human capital at Andersen said: ‘They signal the possibility of a turning point to come – towards growth in employment as confidence picks up for the lows of late last year.’