Temporary billings continued to increase in February 2015, with the rate of growth accelerating to a five-month high, according to the Report on Jobs report from the Recruitment and Employment Confederation (REC).

Permanent staff placements also rose further in February with the fastest rate of growth since October 2014. Vacancies for jobseekers continued to rise in February, with demand for staff at its most marked pace for four months.

Permanent staff starting salaries continued to rise last month with the rate of growth unchanged from the marked pace recorded in January. Temporary/contract staff hourly rates of pay also rose but at a faster pace than that reported the previous month.

The availability of staff to fill job vacancies, however, decreased further in February. Both permanent and temporary candidate supplies deteriorated to a greater extent than in the previous month, with the former recording the sharper decline.

Bernard Brown, Partner and Head of Business Services at KPMG, said: “Recovery in the job market is gaining real traction, and this should help shore up consumer confidence in the run up to the election.”

“However, while the job market might be booming, demand for staff is by no means universal across the sectors. The recovery is being heavily driven by hiring activity by UK plc, while the public sector remains in a semi-stasis ahead of further anticipated cuts later in the year.”

“The availability of skilled candidates remains a significant concern and businesses are already fiercely competing to secure top talent. This dynamic is driving significant salary growth in pockets of the market, such as the IT and engineering sectors, where the demand/supply mismatch is particularly prevalent,” Mr Brown added.

Kevin Green, Chief Executive of the REC, stated: “Recruiters are reporting talent shortages across the economy as businesses expand in response to increasing demand. This is a major challenge for employers, however those seeking work are feeling the benefit. A third of recruiters say that starting salaries for permanent jobs are increasing as competition for skilled staff drives up pay.”

“The question now is about sustainability. Skills shortages are threatening economic growth so politicians need to help business address this issue by equipping jobseekers with the skills that businesses require and ensuring employers can access the skilled workers they need from abroad.”

He added, “This month’s report again highlights skill shortages in engineering and construction, which threaten to delay major infrastructure projects such as (the high-speed rail-link) HS2 and new housebuilding initiatives. Candidates for marketing and customer service roles are now also becoming hard to fill. Demand for these roles is a sign that businesses are responding to increasing consumer and business confidence.”