Job vacancies are still falling but there is some evidence that temporary posts are starting to pick up, according to a new study.

The survey, conducted by the Recruitment and Employment Confederation, showed the employment market deteriorated at a slower pace in May, following recent record falls in demand.

The number of people looking for jobs increased in the wake of the spate of redundancies, which continues to hit British industry, the research found.

However, the study, among 400 recruitment consultancies, also revealed that 60 per cent of recruiters reported either a stable or increased demand for temporary staff in May.