Job vacancies are increasing and advertised salaries growing amid fresh evidence of a recovering labour market, according to a new report.

Jobs site Adzuna said advertised pay rates increased by 1.7% between May and June, more than double the rate between April and May, with graduate jobs seeing the biggest rise.

The number of vacancies jumped by a fifth to almost 840,000 in the past year, the study found.

Andrew Hunter, of Adzuna, said: "Greater economic certainty is finally filtering through into a pick-up in salaries.

"Employers are boosting wages as top talent becomes harder to source, hoping that by supplementing salaries they will attract the best staff.

"At the same time, the pace of job creation is pulling ahead of the number of workers looking to change jobs. Competition for jobs is falling as a result.

"The post-recession era of tough rivalry between job hunters is drawing to a close, as the power switches into the hands of those looking to move, rather than those looking to hire."

The biggest increases in wages last month were in Wales and south-west England, while they fell in London and the East Midlands, added the report.