Firms are having to increase pay rates to recruit new staff, according to a report.
Demand for staff continues to increase amid the easing of pandemic restrictions and improved confidence in the economy, say recruiters.
Staring salaries for permanent and temporary staff are being driven up, fuelled by a scarcity of candidates, said the Recruitment and Employment Confederation (REC) and KPMG.
Their survey of 400 recruitment agencies suggested that the growth in job vacancies has edged down to a nine-month low.
Neil Carberry, chief executive of the REC, said: 鈥淭he jobs market is still growing strongly at the start of 2022.
鈥淲ith competition for staff still hot, companies are having to raise pay rates for new starters to attract the best people, and the cost of living crisis means there is also more pressure from jobseekers who want a pay rise.
鈥淕overnment鈥檚 role is to manage inflation, but also to ensure that they do not discourage investment. Now is the wrong time to be raising National Insurance, the biggest business tax.鈥
Claire Warnes, of KPMG, said: 鈥淭he new year has seen the jobs market continuing where it left off, with a steep climb in permanent and temporary hiring.
鈥淢eanwhile, a sustained decline in the number of suitable candidates has pushed starting salaries up for yet another month.
鈥淪ome sectors are continuing to show the strain of high demand for permanent and temporary roles.
鈥淚n particular, the IT and computing, and nursing, healthcare and medical sectors saw the greatest vacancy increases for yet another month, reflecting the significant workforce and skills challenges which these sectors have faced, and which the pandemic has accelerated.鈥
