Research published on Friday shows that the salaries of permanent employees are growing at the fastest rate in 7 years.
The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs finds that growth of permanent salaries accelerated in April, the most marked increase since July 2007.
There was also a sharp increase in temporary pay in April, compared with the previous month.
The report also shows fast growth in the number of permanent staff placements.
Commenting on the report's findings, Liberal Democrat Chief Secretary to the Treasury Danny Alexander said:
"This is yet more encouraging news. It is more evidence of our economy getting stronger, with more and more people in work, getting the opportunities they need to get on in life."