Jobs growth was maintained at “solid pace” in December, according to the latest Report on Jobs from the Recruitment & Employment Confederation (REC) and KPMG.

The report reveals permanent staff placements and temporary staff billings both continued to rise in December, though the rates of growth recorded were slightly weaker than the three-month highs of November.

Recruiters also reported a stronger improvement in the availability of candidates for temporary/contract jobs in December, witnessing the fastest growth in 13 months, however the improved availability of short-term staff dampened temp pay inflation.

Meanwhile, permanent salaries increased at faster pace.

Kevin Green, REC chief executive, says: “While these figures continued to show private sector employment doing well, the next few months will be very tough for the jobs market in the UK. With public sector cuts, the VAT rise and slowing economic growth, we expect to see businesses being much more cautious about hiring in the short term.

“We are delighted that the government is saying it intends to be pro business, pro growth and pro jobs. We’ll wait to see the proposals in full but addressing the issue of 1m young people under 24 not in education or employment is critical for the long-term success of our economy and must be a priority for the government in 2011.”