Permanent placement numbers have risen at its fastest pace for two years, according to the latest Recruitment and Employment Confederation (REC) and KPMG Report on Jobs.

The report reveals a third consecutive month of growth in both permanent placements and temp billings during October, marking the sharpest rise in two years and 16 months respectively.
 
Demand for permanent staff rose for the first time in 17 months, while demand for temps continued to grow following September’s slight gain.

Candidate availability continued to increase in October, but the rates of improvement in both permanent and temporary staff availability eased to its least marked in 15 months.

Kevin Green, chief executive of the REC, says: “These figures show that the UK jobs market is on the road to recovery, with signs of improvement for the third month in a row. The demand for permanent recruitment is returning as employers start to hire people at an accelerating rate.

“Confidence is on the rise with permanent placements increasing at their fastest rate in two years and growth of temporary staff appointments at a sixteen-month high.

“Based on the latest findings, we anticipate that unemployment will not reach 3m in 2010 as some predicted. This again highlights the benefits of the UK’s flexible labour market and a balanced attitude towards employment legislation in terms of keeping people in work.”