The number of people placed by recruitment agencies in permanent jobs has grown at the fastest pace for three years, according to a jobs survey.

Amid signs of growing demand for permanent and temporary staff, The Report on Jobs: South of England survey of recruitment and employment consultants in Kent, Surrey and Sussex found that the number of people placed in permanent jobs in the region rose for the 11th month running in June. The rate of growth accelerated sharply to a 35-month high.

Of four English regions, the strongest increase was in the south. Agency temp billings in the region also increased at a sharper rate in June. The pace of growth was slower than that registered for permanent staff, but nevertheless the fastest posted in the first half of 2013.

The consultancies reported that permanent salary growth was at an eight-month high, with a solid increase in average starting salaries for permanent staff in June. The rate of inflation was the strongest since October 2012, but remained weaker than the long-run survey average.

Temp pay rose for the fifteenth successive month in June, with the rate of inflation at the fastest level in five-and-a-half years.

Paul Gresham, senior partner for KPMG in the South East said: “The job market across the region has put in a stellar performance this month to post the strongest growth in permanent placements seen across the entire country. With the number of permanent staff taken on by local businesses now at a three year high, this is a welcome indication that economic recovery is gathering momentum in the region.

“Confidence is even beginning to show itself with employers prepared to increase the salaries they offer to new employees. However, the agencies we surveyed also noted a widespread shortage of skilled candidates, which could impede business’s growth plans.

“Businesses should focus further on the ‘self help way’ and place even greater emphasis on developing staff within the organisation, rather than relying on external hires. This will be a key strand in delivering the long term talent pipeline they need to thrive.”