Both permanent and temporary placement numbers rose in May, according to the latest Recruitment and Employment Confederation (REC) and KPMG ‘Report on Jobs’.

The report reveals that permanent staff placements rose for a 10th consecutive month while permanent staff salaries increased rose for the seventh month running in May. Permanent staff availability also fell for the first time in over two years during May.

However, the pace of expansion moderated further from March’s 12-year peak, while  recruiters indicated that the growth of vacancies was marginally slower than in April. Temporary/contract staff pay also rose at a weaker pace compared with the previous month.

Kevin Green, chief executive of the REC, says: “The June ‘Report on Jobs’ shows that job vacancies continue to grow but at a slower rate than previous months.

“With fewer opportunities in the public sector and jobs growth in the private sector improving only very slowly, predictions of a jobless recovery are looking more likely. In this environment, there are real fears for the one million young people not in work or training, who will find it increasing difficult to get on the jobs ladder. This month’s jobs data further underlines the need for urgent action if we are to avoid a new ‘lost generation’ of workers.”