The Recruitment and Employment Confederation (REC) and KPMG’s Report on Jobs recorded a fifth consecutive month of decline in agencies’ temporary and contract billings, with permanent placements reaching 28.6 index points (with 50 indicating no change) in December. 

The only sector to experience positive growth was the nursing, medical and care sector, at 53.3 index points in permanent placements and 55.3 in temporary. 

Mike Stevens, head of business services at accountants KPMG, believes the figures are a lead indicator for a rapidly declining employment situation which is “not yet reflected in the government’s figures”.

Current government unemployment figures reached 1.86m during the three months to the end of October, an increase of 137,000.