Permanent and temporary staff appointments increased at slower, albeit still marked, rates during June, according to the latest Recruitment and Employment Confederation and KPMG Report on Jobs.
Higher placements were underpinned by a further improvement in demand for permanent staff.
Meanwhile, temp billings increased at their slowest rate in seven months.
Although still solid, the growth of temporary staff billings eased to a seven-month low in June. The rate of increase remained below that signalled for permanent appointments.
Higher levels of candidate availability were recorded for both permanent and temporary staff in June. However, the rates of improvement differed, with permanent registering only a marginal rise while temporary posted solid growth that was the sharpest in three months.
Higher pay rates for both permanent and temporary staff were signalled by recruitment consultants in June. However, the increases remained below the respective averages for the series since data were first available in October 1997. REC Chief Executive Kevin Green said: "Demand for permanent staff continues to grow. This is an encouraging sign that the jobs market is stable and, in some sectors such as construction and engineering, rapidly growing.
"However, with the predictions of up to 600,000 job losses in the public sector, it is still too early to tell how much of a knock-on effect this will have on job creation in the private sector.
"Our main concern is how the near million young jobseekers are going to get their first role in a highly competitive jobs market.
"This problem can only escalate due to the thousands of graduates and school-leavers who will be seeking employment in the coming months. Youth unemployment is one of the most pressing issues we currently face in the UK and needs to be urgently addressed.
"Our Youth Employment Taskforce has been looking at how Government, business and educationalists can come together to provide practical solutions to the problem and prevent a 'lost generation' of workers."
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