PEOPLE securing permanent jobs through recruitment agencies in the south rose for the tenth month running in May.

But data compiled in a survey of recruitment and employment consultants shows permanent salary growth has weakened.

During May, there was a further increase in the supply of temporary staff, extending the current period of growth to ten months.

However, temporary staff supply growth was in line with the national average.

The survey found average starting salaries for candidates in permanent positions increased last month but the rate of salary growth eased to the weakest level since last November.

Will Smith, office senior partner at KPMG Southampton said: “It looks as if months of rhetoric are finally becoming a reality. With permanent placements increasing for a tenth consecutive month it seems that private sector jobs are boosting the chances of economic growth.

“The latest figures certainly give the strongest indication for some time that the jobs market is on an upward trajectory. However, the pay-off seems to be a slow-down in salary growth as new starters’ pay has slowed to its lowest level since last November.

“In other words, as employers look to stabilise and prepare for a more positive economic environment, their message to employees remains one of caution. Right now it’s a position that I suspect most will accept as, with uncertainty still the watch-word, the preference for permanent positions will outweigh moves for more money.”

REC chief executive Kevin Green said: “This month’s data is a strong indicator that the jobs market, the unsung hero of the UK economy over the last 18 months, is picking up.

“Recruiters tell us that employers are more optimistic and planning to increase temporary and permanent hiring. This is supported by the expansion of vacancies and a slight increase in starting salaries.

“The only cloud on the horizon is that the skills mismatch is becoming more pronounced. Employers are struggling to find the skilled candidates they need to prepare for the upturn in the economy, while the majority of the unemployed do not have the skills for the available jobs.”