A marginal reduction in the number of permanent staff placements recorded by recruitment consultants in October is the first such monthly fall in two years, according to the Recruitment & Employment Confederation (REC) and KPMG ‘Report on Jobs’.

However, temporary placements increased and at a quicker pace than over the previous month.

Salary levels have remained largely unchanged, with contributors to the report putting this down to increased staff availability — both permanent and temporary staff availability increased at the sharpest rate since late 2009.

This data gives a more recent picture of trends in the industry and paints a gloomier picture than the survey published today by the REC (see recruiter.co.uk REC Industry Trends survey shows impressive recruitment recovery, 9 November).

Kevin Green, chief executive of the REC, says: “The November report shows that the UK’s permanent jobs market has stalled for the first time since July 2009. The slowdown is due to a reduction in public sector employment and weakening consumer and business confidence.”

Green added that he was pleased to see an increase in employers’ use of temps, which he called “fantastic news following the implementation of the Agency Workers Regulations on 1 October”.

Head of business services at KPMG Bernard Brown welcomed the increase in permanent jobs available in IT, finance and accounting.