The job market has started to cool, according to the latest data from the recruitment industry.

According to the REC trade body’s September Report on Jobs, there are fewer skills shortages and wage inflation is at a 20-month low.

Construction was the best performing sector, with several large projects nearing completion, such as the new Wembley Stadium and improvements to London’s King’s Cross Station.

Manufacturing workforces continued to decline as companies in the sector struggled to cope with high oil prices.

Permanent placements continued rise, but at the slowest rate for 26 months, but recruitment agencies reported demand for temps continued to grow apace.