Job vacancies and salaries are both increasing, showing a “statement of confidence” from businesses, according to a new report.

Research by jobs site Adzuna found advertised salaries up by 0.9% compared with a year ago, while vacancies were up by more than a quarter.

Advertised vacancies stood at more than 870,000 in July, driven by more jobs in manufacturing, said the report.

Businesses were willing to pay more to attract skilled workers, said Adzuna.

Co-founder Andrew Hunter said: “Despite a constant stream of negativity towards UK wages, there is genuine cause for optimism. Advertised salaries have grown annually for the first time since the recession, a sign that people may at last begin to feel the economic recovery in their pockets.

“Unprecedented growth in both graduate job vacancies and salaries is a statement of confidence from UK businesses.

“Firms can now afford to take on more entry-level staff, feeling confident that there will be the resources to pay their wages for years to come.

“Firms are now willing to pay more to attract graduates as they compete for skilled entry-level workers. The job market remains tough for graduates, but the playing field is showing some signs of levelling out.”