Permanent salaries

Starting salaries awarded to successful candidates placed in permanent jobs rose for a ninth consecutive month in July. Moreover, the rate of inflation accelerated to the strongest since February 2008. Just under 17% of panellists reported an increase in salaries during the latest survey period, which they attributed to stronger demand for permanent staff and shortages of quality candidates.

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

Re-published with kind permission of Markit

KPMG’s Report on Jobs (see below) shows that this pattern is repeated across all sectors.

Pay Pressures

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

May data highlighted a rise in starting salaries awarded to successful candidates placed in permanent jobs by recruitment agencies. The latest increase was the seventh in consecutive months. Pay inflation was solid, despite easing from April’s twenty-five month high. Consultants generally commented that higher salaries were the result of employers looking to attract skilled staff.

Temp/contract pay rates

Hourly rates of pay for staff in temporary/contract employment increased for a fifth consecutive month in May. However, the rate of growth eased since April and was subdued compared with the series’ long-run trend.

Copies of the full 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

They are being notified across the commercial finance sector with a number of new entrants helping to re-energise the market.

A further positive signal is the number of employed candidates who are now looking for a career move, reflecting a measured confidence returning.

Key points from January survey:

• Growth of permanent placements eased from December’s peak but remained strong
• Temporary/contract staff billings continued to rise at marked pace
• Demand for staff grew at strongest rate since July 2007
• Candidate availability increased at slower pace
• Pay pressures remained subdued

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

“The UK jobs market is continuing its journey back to health. Placements of permanent and temporary jobs have been rising again in January although at a slower pace than a month before, a reminder that the road to recovery will be bumpy. As confidence has returned to the private sector the starting gun for a public sector recession has only just been fired and its impact on the jobs market will be felt over the next 12 to 18 months.”

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

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.

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