MNI: UK Employers' demand accompanies lacklustre supply

--UK Feb Permanent Salaries Index 61.5 Versus 62.3 Jan: Markit/REC

     LONDON (MNI) - UK starting salaries for permanent jobs eased in February

off the back of January's 31 month peak but remained sharp, a Markit survey for

the Recruitment and Employment Confederation(REC)found.

     The Markit/REC permanent salaries index, published earlier Thursday, eased

to 61.5 in February from 62.3 in January, but still in line with Bank of England

expectations that earnings growth will pick up. 

     The temp/contract pay rates measure retrieved the loss in January to move

from 56.0 to 57.0 which was 0.1 below the figure in December of 57.1. 

     The Markit/REC survey, based on evidence from recruitment firms, reflects

developments in the new jobs market, the marginal pay rate, and does not show

what is happening to earnings for existing staff. With skill shortages

widespread and vacancies elevated there are, however, clearly upward pressures

on pay. 

     REC Chief Executive Kevin Green said that "Even with employer uncertainty,

demand for staff continues to rise. At the same time candidate availability is

still dropping, which means that employers in all sectors are struggling to

recruit for the role they desperately need to fill." This was highlighted by the

availability of permanent staff measure rising minimally to 37.7 in February

from 35.9, still way below the 50 contraction/expansion dividing line.

     The temp/contract staff availability measure rose up to 43.5 from 42.6,

while the vacancies index was little changed at 61.3 in February from 61.5 in

January.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI London Bureau; +44 203 865 3828; email: jai.lakhani@marketnews.com

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