The latest Report on Jobs from the Recruitment and Employment Confederation shows that growth in permanent staff placements in the UK slowed down from the previous month, meanwhile temp billings increased at the fastest rate since April.

The report also showed that the availability of candidates continued to decline at the end of the year, albeit at the weakest rate in over three years. Temp staff availability fell at the quickest rate in four months, while the drop in permanent staff availability was the softest since October 2013.

Starting salaries for successful candidates placed in permanent jobs continued to increase in December with the rate of growth in five months. Meanwhile, temp pay rates increased at the fastest pace since May.

The Midlands saw the most marked increase in permanent staff placements, while the North also registered a robust rate of growth. Meanwhile, Scotland saw permanent placements decline for the third month in a row.

In London, permanent placements in the capital rose for the second straight month in December. The number of permanent vacancies in the capital increased, rising to a 10-month peak, and was fractionally slower than the UK average. Similarly, temp demand rose at a faster rate, with the respective index hitting an 11-month high.

“The jobs market continues to beat expectations as we begin the new year. More people are finding jobs each month, and demand for staff is growing. We’ve seen two months of growth in London, which is particularly encouraging following a difficult period between the EU referendum and October”, REC Chief Executive Kevin Green said.

“The big question for 2017 is about how employers will fill vacancies,” Green said. “The unemployment rate is at a record low and candidate availability for temporary jobs has been getting worse for the last three and a half years. There is an urgent need for people to fill roles in catering, care, and food manufacturing — in these sectors especially employers rely heavily on workers from the EU".