Permanent vacancies have risen to their highest levels for 28 months, according to the latest Recruitment and Employment Confederation (REC) and KPMG Report on Jobs.

The report reveals that both permanent staff placements and temporary/contract staff billings increased at faster rates in November, rising at the strongest rate for 28 and 19 months respectively.

The number of permanent staff available to fill vacancies rose at its weakest rate for 17 months, while temp availability increased at its slowest pace since July last year.

Kevin Green, chief executive of the REC, says: “This is very positive news. Employers in nearly all sectors are lifting recruitment freezes and starting to hire again. Flexibility in the UK’s labour market has proved effective in ensuring that unemployment has not reached the levels experienced by some of our international competitors. While UK output has shrunk by 5.9%, employment has declined by only 2%.

“Despite the positive signs, the government needs to do more – particularly to help the one million 18-to-24-year-olds out of work in the UK. This week’s White Paper on jobs must include specific measures aimed at encouraging employers to take on young people.

“The business community also has a key role to play which is why the REC is this week launching a Youth Employment Task Force chaired by Baroness Prosser and involving a coalition of employers and recruiters who are in the front line of the UK jobs market.”