UK recruiters say hiring is slow and wage growth is the weakest in more than a year.

The Recruitment and Employment Confederation’s (REC) measure of permanent hires rose slightly from the 17-month low recorded in July, while temporary hires rose at the slowest pace since February 2021. Job vacancy growth fell to its lowest level in 18 months.

“Although the street to post-pandemic employment is calming down, there have been no real signs of a slowdown in demand from employers,” said Neil Carberry, chief executive of REC.

“In fact, reports from REC members suggest that any decline in confidence in the market is primarily due to candidates playing it safe, which has the effect of further tightening the market,” he said. he adds.

The combination of a shortage of applicants and double-digit inflation has resulted in steep increases in starting salaries for permanent and temporary staff.

But in August, wage growth for people starting a permanent role was the weakest since June 2021.

The BoE is watching for signs of price pressure in the labor market as it considers how much further it needs to raise interest rates to combat double-digit inflation.

The results of the survey were published before the expected announcement on Thursday by the new British Prime Minister Liz Truss, of a major economic support program.

The survey interviewed 400 recruitment and employment consulting firms between August 12 and 24.

Source link -88