There was a strong growth in demand for permanent and temporary IT workers in July, according to the monthly Recruitment and Employment Confederation (REC)/KPMG Report on Jobs for July.

This was supported by robust growth in the level of business activity in IT and telecom companies according to the Markit Household Finance Index (HFI) survey, which forms part of the report.

The REC/KPMG report uses a figure to represent demand in each job sector. A figure above 50 indicates an increase on the previous month.

In July, the figure for IT grew from 67.1 to 68.1, with the index for permanent staff demand being consistent with expansion in the number of permanent vacancies in the IT sector.

The figure was the highest in three months and above the average for all types of permanent workers (67.6) across the UK. However, IT was fourth out of nine in the demand for staff 'league table', which was topped by the construction sector.

IT was lower down the table in terms of temporary staff, in seventh place. This is despite a six-month high increase in the rate of demand for IT contractors in July.

Heath Jackson, partner in the CIO advisory practice at KPMG, said: "For the first time in months we are witnessing churn in the labour market. It seems that employees are finally beginning to wake up to the opportunities available to them.

"Perhaps it's true that 'every person has their price' because the movement in labour is coinciding with another rise in starting salaries. Just a few months ago employers couldn't tempt staff to swith roles, but indications are that employees' caution over change is being replaced with hunger for something new."

The key permanent staff skills that recruiters said were in short supply in July were in ecommerce, .Net, Java, SQL and PHP.

For temporary roles, architects, business intelligence, developers, Java, .Net, PHP and SQL skills were lacking.