However, with the number of job vacancies across the UK hitting a record high, employers fear staff shortages could stall future growth following the lifting of lockdown restrictions.
Office for National Statistics data shows an estimated 208,236 people in north Nottinghamshire were on company payrolls in July – 588 more than in June.
The increase moves the figure closer to the 209,036 recorded in February 2020 – the month before the UK was plunged into its first coronavirus lockdown.
The data also showed the median monthly salary for payrolled workers in the area rose from £1,710 in February last year to £1,834 in July this year – a £124 increase.
Across the UK, the number of payrolled workers increased by 182,000 between June and July to 28.9 million – but this was still 201,000 fewer than in February last year.
The ONS cautioned the payroll figures, which do not include the self-employed, are early estimates which can be revised in future months.
The Confederation of British Industry said they showed signs of recovery but added increased demand for workers was creating a new problem for companies.
The number of vacancies across the UK reached almost a million in the three months to the end of July – the highest estimated quarterly figure since records began in 2001.
Arts, leisure and food service firms particularly contributed to the surge in job openings.
Signs of recovery
Jennifer Beckwith, CBI’s head of employment, said: “With employment up and unemployment down, the labour market is showing further signs of recovery.
“Yet, with vacancies at a record high, employers are concerned staff shortages are stalling their ability to grow and support the country’s wider economic recovery."
She said the Government should help by funding training for in-demand qualifications and removing barriers which stop firms being able to recruit from abroad.
Separate figures published by the ONS also show that in Mansfield and Ashfield, two of the four local authorities in north Nottinghamshire, there was a fall in the number of people claiming unemployment benefits last month.
About 3,520 people were on out-of-work benefits in Mansfield as of mid-July, down 125 from 3,645 in mid-June.
It meant 5.2 per cent of the area's working population sought support in July, compared with 5.4 per cent a month earlier.
About 4,080 people were on out-of-work benefits in Ashfield as of mid-July, down 55 from 4,135 in mid-June.
It meant 5.2 per cent of the area's working population sought support in July, unchanged from a month earlier.
The figures include those aged 16-64 on Jobseeker’s Allowance and some Universal Credit claimants, who are unemployed and seeking work or employed but with low earnings.
Chancellor Rishi Sunak said the July data showed the job market was recovering nationally, despite the winding down of the furlough scheme, which will end in September.
He said: "The figures show our plan for jobs is working – saving people’s jobs and getting people back into work.
“I know there could still be bumps in the road, but the data is promising – there are now more employees on payrolls than at any point since March 2020 and the number of people on furlough is the lowest since the scheme launched.”