KPMG-REC Report on Jobs: Wage growth remains sticky in May

The KPMG-REC Report on Jobs showed that the the labour market continues to soften, although at a slower pace than in April with wage growth remaining sticky.

• Permanent and temporary placements continue to remain below the breakeven 50 level. However, the press release notes that the decline in permanent placements have eased for a second consecutive month, with the index at its highest level since May 2023. Temporary placements also saw a slower reduction, with the index at its highest level since January.
• On the wages side, the rate of pay increases for both permanent and temporary workers slowed slightly versus the increases seen in April. However, the press release notes that: " For permanent workers, salaries were reported to have increased markedly and to only a slightly lesser extent than April’s four-month high. Temp staff saw a similar trend, with pay rising at only a slightly slower pace than in the previous month. "
• Overall, these data offer no real encouragement to MPC members who are contemplating when to enact their first cut to Bank Rate and point towards wage growth remaining stickier than forecast in the May MPR.