Permanent placements in the UK grew at its slowest rate in seven months in April, while permanent and temporary candidate availability fell to its lowest rate in 16 months, according to data from the most recent Markit/REC (Recruitment and Employment Confederation) Report on Jobs.

The data also showed that temp billings increased at a ‘sharp and accelerated’ pace that was the fastest seen in 2017 so far.

Meanwhile, vacancies continued to rise in April for both permanent and temporary/contract staff. This was despite growth in demand for both types of staff softening slightly since the previous month.

REC and Markit data also showed that growth in permanent starting salaries fell to a four-month low in April, but it remained sharp overall and stronger than the series average. Meanwhile, hourly pay rates for short-term staff increased at the sharpest pace in 2017 so far.

Among the regions, the Midlands saw the fastest rate of expansion in permanent placements, closely followed by Scotland. Meanwhile, London saw the slowest increase.

Temp billings growth was recorded across all monitored regions, led by Scotland and London. The weakest increase was registered in the South of England.

Demand for staff rose sharply across the private sector, but declined in the public sector. Demand for private sector permanent and temporary staff rose sharply despite the rates of expansion easing to four- and three-month lows, respectively. At the same time, vacancies for permanent public sector staff declined for the second month in a row, albeit slightly. Demand for public sector temporary workers meanwhile fell for the first time since January, though only slightly.

Engineering was the most in-demand category for permanent staff in April, closely followed by IT & Computing and Nursing/Medical/Care. Nonetheless, strong expansions were seen across the board at the start of the second quarter.

According to the report, April data signalled a broad-based upturn in demand for temporary/contract workers in the UK. Nursing/Medical/Care ranked at the top, while Hotels & Catering placed second in the overall rankings.

“Demand for staff is growing within all sectors and all regions of the UK, but there are fewer and fewer people available to fill the vacancies,” REC Chief Executive Kevin Green said. “We have the lowest unemployment rate since 2005, and people already in work are becoming more hesitant about moving jobs amid Brexit uncertainty. Meanwhile, the weakening pound and lack of clarity about future immigration rules is putting off some EU nationals from taking up roles in the UK.

“As a result, candidate availability is at a 16-month low and recruiters are flagging a shortage of suitable applicants for more than 60 different roles from cleaner to accountant,” Green said. “Every shortage has wider implications, for example the exceptional reputation UK engineering enjoys globally is at risk because employers can’t find people with the skills they need.”

“One thing is for certain, if British business is to thrive then whichever party forms a government after 8 June needs to address the ever-shrinking pool of suitable candidates by investing in skills and career advice for UK jobseekers, as well as safeguarding access to the workers we need from abroad. It is vital that the future immigration system is agile enough to reflect and adapt to evolving labour market needs,” Green said.