The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as well as average hourly rates of pay for temp/contract staff.

Permanent salaries

Starting salaries awarded to successful candidates placed in permanent jobs increased for the second month running in December. Furthermore, the latest rise was the fastest since June 2008. Where higher salaries were reported (by 12% of panellists), this was usually attributed to stronger demand for staff.

Temp/contract pay rates

Hourly rates of pay for temporary/contract staff decreased for a fifteenth successive month in December. However, the rate of decline eased to only a marginal pace that was the weakest in that sequence.

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Commenting on the latest survey results, Bernard Brown, Partner and Head of Business Services at KPMG said:

“The UK jobs market looks healthier today than at any time in the last two years which is, of course, encouraging news. Sectors like accounting and banking lead the recovery and we may well have reached the tipping point into growth, driven by returning confidence in the private sector.

“However, we are still to see the impact of the looming public sector recession on the jobs market, which will play out over the first twelve months of a new parliamentary term.”

Copies of the report are available on annual subscription from Markit. For subscription details please contact: economics@markit.com Tel: +44 1491 461000

Re-printed with kind permission of Markit