Employers are "running out of options" to fill job vacancies, according to a new report.

A study for the Recruitment and Employment Confederation (REC) has found that demand for staff has reached a 21-month peak but the number of candidates has suffered its sharpest drop since August 2015.

The NHS and the cyber security sector are among the worst affected, the Markit/REC Report suggests.

REC director of policy Tom Hadley said: "Demand for staff is the strongest in almost two years, but the number of people available to take those jobs has plummeted.

"Official data shows unemployment has dropped to the lowest level since 1975, and EU citizens are leaving the UK in droves.

"Employers seeking to fill vacancies are running out of options.

"Skill shortages are causing headaches in many sectors.

"The NHS, for example, is becoming increasingly reliant on short-term cover to fill gaps in hospital rotas because there aren't enough nurses to take permanent roles.

"Meanwhile, the shortage of people with cyber security skills is a particular concern in many businesses in the wake of the recent high-profile WannaCry attacks.

"Whichever party forms the next government must focus on improving the employability of our young people and boosting inclusion for under-represented groups.

"Alongside this, these figures clearly show that in many sectors we need more, not fewer people, so that businesses can grow and public services continue to deliver."

The Markit/REC Report found that average starting salaries for people placed into permanent jobs increased at the quickest rate in three months during May.

Hourly rates of pay for temporary/contract staff also rose sharply, despite the rate of growth softening since April.

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