The number of job appointments has risen in September for the second month in succession, but the job market is still "fragile", according to a report issued by KPMG and the Recruitment and Employment Confederation (REC).

Both permanent and temporary job appointment increased in September. The index for permanent staff placements in September was 58 and 55 for temporary staff placements - any reading above 50 indicating an increase in appointments compared with the previous month.

The report also showed that the number of job vacancies fell in September at the slowest rate for 16 months, suggesting that demand for staff was stabilising.

"Employers have retained more staff during this recession than previously. This labour hoarding means companies will be able to respond to increases in demand without hiring new employees," said Kevin Green, REC's chief executive.

Unemployment in the UK currently stands at 2.47m, the highest since 1995, with economists expecting it to continue to rise.