Demand for staff and shortages of skilled candidates fuelled pay rises last month, according to a survey.

The Report on Jobs, published by the Recruitment & Employment Confederation and KPMG, revealed that trained job seekers are needed in the workplace to fill the large number of permanent roles available. This is good news for current graduate job hunters with experience who can take advantage of the growing need for applicants who have already obtained the workplace skills they might need. Those who do find employment are enjoying the benefits of increased pay.

For those still studying, the findings suggest that gaining some valuable experience while at University could be crucial when you come to find a full time job.
The report also signalled that the growth of permanent staff placements accelerated to a 33 month high in December and that the number of temporary worker billings rose at the sharpest rate for four months. The survey data was provided by recruitment consultancies and employers, with additional data on national newspaper recruitment advertising.

People Services Manager at KPMG, Michael Carter said: "The figures show a strong start to 2007. Given that demand is growing at the strongest rate for over two years, this type of activity shows no sign of slowing down."