Demand for staff continues to increase across the UK as businesses bask in the glow of an economic revival

Companies are increasingly on the lookout for new staff, especially those in the construction and engineering industries, according to the results of a new survey.

New research from the Recruitment and Employment Confederation (REC) has revealed that a renewed sense of confidence among businesses, triggered by the improvement in the economy, is spearheading a large recruitment drive.

A study among 400 recruitment and employment consultancies in September showed a "substantial" rise in permanent staff placements across the UK, and these have now been growing continually for a year.

Temporary placements also increased sharply during the month, with growth close to the 15-year high which was reported back in August.

"This month's figures show the jobs market continues to be the success story in the UK economy with all regions and sectors experiencing growth," commented REC chief executive Kevin Green.

"The good news continues, with starting salaries for permanent jobs rising at the fastest rate in over five and a half years - and they have been rising for the last 17 months."

Construction and engineering companies experienced the fastest increases in permanent jobs, while the slowest rise was recorded in the hotel and catering sector, the study showed.

But while demand for staff is up nationwide, the number of individuals putting themselves on the market for work has dropped for the fifth month in a row, it was discovered.

Despite the recent rise in wages, Bernard Brown of KPMG, which helped with the report, linked the lack of jobseekers coming forward to the trend for unattractive salaries.

"Perhaps the pay on offer has to rise to encourage staff to make the move," he said.

"If it doesn't, we could be about to witness a growing gap between what the employers need and what employees are prepared to do," the expert added.

Copyright Press Association 2013