UK recruitment consultancies registered a further marked increase in hiring activity during February, according to the latest KPMG and REC, UK Report on Jobs survey. That said, permanent staff appointments expanded at the softest rate for 11 months, while temp billings growth also slowed, as panel members stated that candidate shortages restricted their ability to fill roles. Notably, total candidate availability declined at a sharp and accelerated rate that was the quickest since last November. At the same time, vacancy growth picked up to a three-month high. A combination of robust demand for workers and low supply led to further upward pressure on rates of starting pay. Salaries for new permanent joiners rose at the second-fastest rate in over 24 years of data collection, while temp pay also increased sharply.

The report is compiled by IHS Markit from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.