The latest data from the Markit/REC (Recruitment and Employment Confederation) Report on Jobs showed permanent staff placements continued to rise in November, on a month-to-month basis, with the rate of growth rising to its sharpest rate since February. Temporary/contract staff appointments also rose at a quicker pace, with the rate of growth reaching a seven-month high.

The report also showed that there was a further strong demand for staff in November, with employee vacancies rising at steeper rates for both permanent and temporary roles, compared to the previous month.

“The jobs market is ending the year on a high with appointments and vacancies at levels not seen since February,” REC Chief Executive Kevin Green said. “In all parts of the UK, recruiters are reporting increasing demand, so clearly businesses continue to seek growth in their workforces.”

Meanwhile, the availability of staff for filling job vacancies continued to fall during November. Latest data pointed to the fastest decline in permanent staff availability for eight months, while temporary staff availability also dropped at a quicker rate.

“The main concern as we look forward to 2017 is an increasing skills shortage,” Green said. “The UK employment rate is at a record high and jobs are going unfilled in key areas. We need engineers to deliver infrastructure projects, carers and nurses to look after our aging population, teachers to educate our young people, and right now we are short of warehouse workers, drivers and chefs to meet demand over Christmas.”

“In the longer term, improving hiring and training of young people via apprenticeships will help to ensure that employers develop a pipeline of people with the required skills. But there is an immediate need, which must be met now so that businesses can thrive,” Green said.

“Talent shortages will be exacerbated if the government imposes restrictions on people coming to the UK from abroad. This might result in businesses considering options such as offshoring or relocation abroad; this is a risk we cannot afford,” Green said.

November survey data also pointed to further robust demand for private sector staff. While vacancies increased sharply for both permanent and temporary roles, both saw growth ease slightly since the previous month.

At the same time, demand for public sector staff increased during November. Though the rates of increase were modest, it was the first time that vacancies for permanent and temporary roles had both increased in the sector since July.

According to the report, the rate of growth in permanent starting salaries reached a six-month high in November. Short-term pay rates also continued to rise, and at the fastest rate since August.

On a regional basis, the North continued to see the strongest increase in permanent placements. The only region to see a decline was Scotland. Moreover, all of the regions monitored by the survey with the exception of Scotland, saw short-term staff billings increase in November.