Demand for IT staff in the UK, both permanent and temporary, rose significantly during March 2010, according to a survey of recruitment agencies by KPMG and Recruitment and Employment Confederation.

IT topped the eight sectors tracked by the report, with demand for permanent IT staff growing particularly fast.

Across all sectors, demand for employees across all sectors rose the fastest since 1997. The survey also found that average pay rose for permanent staff rose and, to a lesser degree, temporary staff during the month.

The supply of both types of staff also rose slightly during the month.

According to Kevin Green, the REC’s chief executive, this positive news is “tempered by public expenditure cuts which are already impacting on recruitment in this sector. Deep-rooted reforms and innovative approaches to public sector resourcing will be needed in order to maintain frontline services.”

Last month, a survey of IT directors by recruitment consultant ReThink Recruitment found that almost half were planning to increase their departmental headcount during 2010.