Salaries For New Permanent UK Jobs Hit Fresh Highs: Markit/REC

-UK July Permanent Salaries 60.6 Vs 60.1 June: KPMG/REC 

By David Robinson

     LONDON (MNI) - Overall UK wage growth has been sluggish but a survey of

recruitment consultants found pay for new jobs hitting fresh highs in July.

     The Recruitment and Employment Confederation/Markit survey found that its

measure of permanent salaries rose to 60.6 in July from 60.1 in June, a 20 month

high, while for temp pay it dipped only slightly to 57.5 from 57.8. With 50

marking the expansion/contraction line, these data point to marked pay growth

for new jobs, with staff availability continuing to shrink.

     The Availability of Staff index came in at 35.7 in July, up from 35.0 in

June but still deep in contractionary territory. 

     The survey's headline permanent placements measure rose to 58.4 in July

from 55.9 in June, the highest reading in 27 months, while the

temporary/contract staff billings measure rose to 61.3 from 58.8.

     The REC/Markit survey measures marginal changes in pay rates, capturing

only those who are moving jobs or starting afresh in the labour market, while

excluding pay deals covering existing employees. Its impact on overall pay

growth is dependent on the extent of job churn.

     "The jobs market continues to confound expectations with both permanent and

temporary placements growing at the fastest rate for over two years. Starting

salaries are also rising," Kevin Green, REC Chief Executive, said.

     In the quarterly August Inflation Report the Bank of England lowered its

forecast for average weekly earnings growth to 3% for the fourth quarter of 2018

from 3.5% back in May, with Q4 2017 left unchanged at just 2%.

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

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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