Permanent job placements fall in April

LONDON (Reuters) - The number of permanent job placements fell for the second time in three months in April as growth in vacancies for permanent staff languished at its weakest since mid-2003, a survey showed on Wednesday.

The Recruitment and Employment Confederation/KPMG Report on Jobs also showed subdued wage inflation despite rising living costs, with the weakest rate of growth in pay in permanent roles in nearly five years.

The figures, which showed an acceleration in temporary placements, indicate a weakening economy may be starting to take some toll on the currently robust labour market.

Official figures for March showed the number of people claiming jobless benefit at its lowest since 1975.

The REC/KPMG permanent placements index fell to 48.9 from 51.3 in March and the corresponding vacancies dropped to 53.3 from 54.2, the lowest since July 2003.

The permanent salaries index slipped to 51.0 from 55.5 in March, a 57-month low.

There are signs employers are seeking more temporary staff, however, with the temporary billings index rising to 57.8 in April from 56.0 in March and temporary vacancies also picking up.

(Reporting by Matt Falloon; Editing by Ron Askew)