April 5, 2011 / 11:10 PM / 7 years ago

Job vacancies up and salaries rise faster - survey

LONDON (Reuters) - Recruiters, led by the private sector, reported rising numbers of job vacancies and higher starting salaries for permanent staff in March, a survey showed on Wednesday.

Growth of permanent and temporary hiring slowed from the 10-month high hit in February with the permanent placements index falling to 59.7 from 62.7, the monthly survey from the Recruitment and Employment Confederation and KPMG showed.

However, permanent staff vacancies rose at the fastest pace since April 2010 and temporary and contract staff vacancies increased at the sharpest rate since July 2007.

“This demonstrates increasing demand for new staff from private sector businesses,” Kevin Green, Chief Executive of the Recruitment & Employment Confederation said in a statement.

“What is concerning is the increase in starting salaries for permanent staff,” he said.

Permanent salary inflation accelerated to the highest pace in eight months, but was still below the survey’s thirteen-year average.

People changing jobs were seeking to compensate for rising prices while at the same time employers in areas such as IT, engineering and finance were competing harder for qualified candidates, he added.

The government is relying on private businesses to create new jobs as hundreds of thousands of public sector jobs are slashed as part of the government’s spending cuts.

The number of Britons out of work rose to its highest since 1994 in January, though unemployment benefit claims fell in February.

Reporting by Sven Egenter

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