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Job growth continues to rise albeit at a slower pace

The job market expanded again last month, but the rate of growth slowed down.

According to the latest Report on Jobs from the Recruitment and Employment Confederation (REC), both permanent and temporary staff appointments were up in June.

Recruitment levels were particularly strong in engineering and construction.

However, the pace of growth in the labour market was at its slowest for five months.

The report also revealed that there was a rise in June in the numbers of people who were available for permanent and temporary work.

Kevin Green, the REC's chief executive, said: "Demand for permanent staff continues to grow. This is an encouraging sign that the jobs market is stable and, in some sectors such as construction and engineering, rapidly growing.

"However, with the predictions of up to 600,000 job losses in the public sector, it is still too early to tell how much of a knock-on effect this will have on job creation in the private sector."

Mr Green expressed specific concern over the difficulty that many of the million younger jobseekers will experience in a highly competitive jobs market.

He added: "This problem can only escalate due to the thousands of graduates and school-leavers who will be seeking employment in the coming months. Youth unemployment is one of the most pressing issues we currently face in the UK and needs to be urgently addressed. 

"Our Youth Employment Taskforce has been looking at how government, business and educationalists can come together to provide practical solutions to the problem and prevent a 'lost generation' of workers."