MNI: UK Permanent Start Salaries Highest Since Jun 2015: REC

--UK Jan Permanent Sales Index 62.3 Versus 60.7 Dec: Markit/REC

By David Robinson

     LONDON (MNI) - UK starting salaries for permanent jobs rose in January at

their fastest pace since June 2015, a Markit survey for the Recruitment and

Employment Confederation (REC) found.

     The Markit/REC permanent salaries index, published Thursday, rose to 62.3

in January from 60.7 in December, providing further support to the Bank of

England's projection that earnings growth will pick-up.

     The temp/contract pay rates measure dipped to 56.0 in January from 57.1 in

December. 

     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.

     "From what I see today, the firming of the labour market and the pick-up in

wages over the next few years appear to be on track," BOE Governor Mark Carney

said in evidence to the House of Lords Economic Affairs Committee on January 30.

     The Markit/REC survey highlighted continuing skill shortages. The

availability of permanent staff measure rose to 35.9 in January from 34.8, still

way below the 50 contraction/expansion dividing line.

     The temp/contract staff availability measure nudged up to 42.6 from 42.3,

while the vacancies index was little changed at 61.5 in January from 61.8 in

December.

     Permanent staff placements rose to 58.4 from 56.4, the highest reading

since April 2015.

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

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