Jobs market recovering with vacancies up again

Job vacancies continued to increase last month as the employment market continues to recover, according to a report today.

Research among 400 recruitment firms showed the availability of staff also rose, although at a slower pace than earlier in the year.

There were further "marked increases" in permanent and temporary appointments in April, but at a slower rate than in March.

The Recruitment and Employment Confederation research said hourly pay rates for temporary or contract staff increased at the fastest pace for more than two years.

Kevin Green, the confederation's chief executive, said: "The report highlights continued growth in both temporary and permanent employment, although the rate of growth has slowed slightly compared with previous months.

"The first test of the new administration will be to nurture the slowly improving but fragile jobs market. The incoming government must address two priorities - stimulating jobs growth and reducing expenditure without creating a public sector recession through shedding thousands of posts."

He said the public sector had to look to private firms for ways to retain workers: "Private sector employers have used short-time work, sabbaticals and pay freezes as a means of reducing costs whilst retaining high-performing staff."

Another report, by employment firm Reed, said demand for new workers had remained "steady" last month, although it increased in financial services, insurance and leisure and tourism.

Martin Warnes, managing director of reed.co.uk, warned that the demand for staff did not mean that economic uncertainty had disappeared.

"Across the economic scene our job index figures offer more signs of nervousness than confidence at the moment," he said.

"Salaries are trending downwards, even in areas where demand for staff seems particularly buoyant, and demand for workers in London has dropped below last year's levels for the first time since the index began."