KPMG: job growth at 33-month high

Permanent job creation increased for the fourth successive month during December according to the latest report from KPMG and the Recruitment & Employment Confederation.

The report claims the rate of growth in permanent staff placements was at its fastest since March 2010.

Temporary job creation in the North also rose during December, although the rate of growth decreased from November. The same trend was observed across the UK.

From all four monitored English regions, the North, the South, the Midlands and London, only London registered a fall in job creation. Meanwhile, temporary job creation expanded in all surveyed regions, with the fastest increase noted in the South.

Recruitment agencies across the UK indicated higher demand for both temporary and permanent staff, but the rate of growth was quickest in the North.

The supply of candidates for permanent vacancies in the North fell during December. The rate of decline was the fastest in 56 months. In the UK as a whole, the availability of permanent staff decreased modestly.

The availability of temporary and contract staff in the North decreased in December. The rate of decline was the fastest in 29 months.

Permanent candidate numbers fell in all four monitored regions, with the fastest decline noted in London.

Permanent salaries also rose at their fastest rate since March 2008 and permanent staff salaries in the North rose for the tenth successive month during December.

Contract pay rates in the North increased during December as did average hourly pay rates for temporary and contract staff.

Average starting salaries for permanent workers rose in all four surveyed regions during December. The rate of growth was largest in the North. Temporary pay rates also increased in the North.

Kevin Green, REC chief executive, said: "The picture for 2013 is likely to be similar to 2012, and we expect the labour market to yet again outperform the sluggish economic growth in the UK. Employers are confident in their own businesses if not the economy as a whole and know they have to retain or recruit talent in order to have a competitive advantage."

Jonathan Hurst, Northern chairman of KPMG, said: "The North continues to lead the recovery in the wider UK jobs market, illustrating the resilience and entrepreneurial outlook of Northern employers. We expect this solid growth to continue – although it may be at a slower rate – in the North and nationally as the economic picture becomes clearer."

The Report on Jobs: North contains original data from the survey of recruitment and employment consultants in the North of England. The report is designed to provide a comprehensive and up-to-date guide to labour market trends and the data are directly comparable with the UK Report on Jobs.