MNI DATA ANALYSIS: UK Temp Pay Growth Slows; Perm Pay Up - REC

--IHS Markit/REC Oct UK Permanent Placements 55.3; Sep 55.4

By David Robinson

     LONDON (MNI) - Pay rates for new permanent jobs in the UK picked-up while

growth in temp pay decelerated in October, a survey by IHS/Markit for the

Recruitment and Employment Confederation(REC) found.

     The REC October survey's permanent salaries index rose to 61.2 from 60.7 in

September but fell from 61.5 in August while the temp/contract pay index fell to

56.0 from 58.2. Skill shortages remained elevated, although somewhat less

pronounced than in September.

     The October staff availability index rose to 36.0 from 34.9 in September,

with the permanent staff availability index up to 35.8 from 34.7 in September

and the temp availability index up to 39.6 from 38.7.

     IHS Markit compiles diffusion indices for REC, with any reading above 50

indicating an expansion and below 50 a contraction, so these latest figures

still show rising pay growth for new jobs and atrophying labour availability.

     The permanent placements index edged down to 55.3 in October from 55.4 in

September while temp billing one fell to 58.2 from 59.8.

     The permanent jobs data show "that growth is slowing down and one of the

reasons is that we simply do not have enough people for all the roles that are

out there," Kevin Green, REC Chief Executive, said.

     Green's comments chime with those of BOE Governor Mark Carney at the

November Inflation Report. 

     "We're running out of road on labour supply," Carney said, citing the

decline in net migration growth and participation rates.

     "There's just less labour to come into the market," Carney added.

     Green said EU workers were already leaving, while employers were paying

higher starting wages to attract the right candidates.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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