September saw a further slowdown in the UK jobs market with permanent staff placements rising at their weakest rate for a year, according to the latest Report on Jobs from the Recruitment & Employment Confederation (REC) and KPMG.

Temp billings growth came in at an 11-month low, while there was a slower decline in permanent staff availability and an increase in temp availability.

Permanent staff salary growth slumped to a 10-month low and temp pay dropped slightly for first time in nine months.

Kevin Green, REC chief executive, says: “September’s Report on Jobs shows that the jobs market is starting to flatline and may herald a ‘double dip’ in employment.

“While there is marginal growth, these figures are the worst we have seen for a year. The government must do everything possible to avert the threat of increasing unemployment. This must include avoiding new regulation that could restrict businesses and jobs growth. How the government decides to implement the Agency Workers Regulations will be its first major test in cutting red tape on business.”

Bernard Brown, partner and head of business services at KPMG, adds: “September has seen a further slowdown of the UK jobs market with permanent job appointments rising at the weakest rate for a year. As in previous months engineering, construction and executive staff have been most in demand, an indication of the continuing recovery in the private and manufacturing sector.

“This is in sharp contrast to the situation in the public sector where many organisations have started redundancy programmes or have at least imposed hiring freezes. For example, the sharp decline in the demand for healthcare professionals comes as a direct result of government cutbacks and efforts to reform the NHS and may be only a sign of things to come.”