Recruitment firms say they are placing the highest number of people into permanent jobs for two years, amid strong evidence of rising wages.
The report by the Recruitment and Employment Confederation (REC) and professional services group KPMG found that demand for staff was at a three-year high, with vacancies also accelerating.
Pay for permanent staff rose at the fastest pace for two years, the survey suggested, while the position was even healthier for temporary and contract workers.
Bernard Brown of KPMG said: "The latest figures reveal permanent placements enjoying their highest growth rates for over two years and temporary roles being filled at the quickest pace since Christmas.
"Perhaps the sun has finally come out to shine on the jobs market and economy at large."
REC chief executive Kevin Green added: "The UK jobs market has been agile enough to weather the recession and emerge with more people in work than ever before and has performed considerably better than our European counterparts.
"Our main concern is that the soaring success of the jobs market and signs of economic recovery could be undermined if the Government does not do more to address the growing skills gap.
"Roles in engineering and IT are in ever increasing demand as recruiters struggle to source the talent that businesses need to succeed.
"However more roles, such as sales and digital marketing, have been added to this growing list in the last couple of months and show no signs of disappearing."
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