Demand for staff still on increase - graduate jobs

Demand for new employees is increasing at its strongest rate since summer 2007, according to a new report.

The number of permanent placements rose for the sixth consecutive month in January, according to a survey of 400 recruitment and employment consultancies.

Meanwhile there was an increase in demand for temporary employees, although at a slower pace than December.

Kevin Green, chief executive of the Recruitment & Employment Confederation, said: "The growth in people getting permanent jobs eased in January but still remained positive overall.

"The number of vacancies reported by recruitment businesses also accelerated at the sharpest rate since July 2007, suggesting that we are now on the long road to recovery. The labour market is out of intensive care but it is still in a fragile state.

"While employers are hiring more now than at any other time in the last year, the recovery is tentative and must not be put at risk by taxes or regulatory changes."