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The number of people who were given permanent jobs last month increased again, despite the uncertain financial climate at the moment, according to a new report.

According to the research, by KPMG and the Recruitment and Employment Federation, the number of full time jobs increased although at the slowest rate it had done for four and a half years.

Alan Nolan of KPMG said: "As the full impact off the credit crunch on the economy is still uncertain, businesses are becoming more cautious, thus the growth in both permanent placements and temporary demand for staff continued to slow last month."

He added that in the coming months employers will be "reviewing resourcing requirements and either considering redundancies or maintaining a flat headcount as a away of riding out the storm".

Pay inflation also increased by a smaller amount than the previous months which could suggest that the skill shortages are easing and there is now a slowing of the growth in demand of staff.

The number of people employed in temporary work also increased last month, but again at a slower rate than normal.

KPMG is a provider of professional services including audit, tax, financial and risk advisory. It was formed in 1987 and has 22 offices across the UK.

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