Recruiters reported an increase in new placements at the fastest rate since March 2010, coupled with the biggest increase in vacancies in six years.
"The jobs market continues to skyrocket with permanent employment and temporary placements at three and two year highs, and vacancy growth accelerating to a six year high," said Kevin Green, REC chief executive.
"Combination of confidence returning to the UK economy and higher employer demand have contributed to this impressive set of figures.
"Starting salaries accelerated in July reaching the highest for 26 months. This is an early indicator of increased competition for candidates and skills shortages in a growing number of sectors. In addition to this, hourly rates for temp workers increased at the strongest rate since January 2008.
"We anticipate starting salaries increasing over the coming months as the economy strengthens and competition to secure talent hots up."
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