Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UK recruiters report pay growth close to three-year high - REC

Published 08/11/2018, 07:42
Updated 08/11/2018, 07:42
© Reuters. Workers are seen in the More London district, with Tower Bridge behind during the morning rush hour in London

© Reuters. Workers are seen in the More London district, with Tower Bridge behind during the morning rush hour in London

LONDON (Reuters) - Starting salaries for new employees at British companies are rising at one of the fastest rates in recent years, reflecting staff shortages and robust demand from employers, recruiters said on Thursday.

New staff salary growth edged down only fractionally in October after hitting a three-year high in September, the monthly survey from the Recruitment and Employment Confederation (REC) showed.

"Whilst Brexit may be dampening overall business investment, firms continue to hire new staff at near record rates. Consequently, we're seeing wages pushed upwards and a trend of canny workers job hopping to secure a pay rise," said James Stewart, vice chair of accountants KPMG, who sponsor the survey.

Past REC data showing stronger growth in starting salaries has not always translated into stronger earnings across the British workforce as a whole.

However the most recent official data for average weekly earnings, excluding bonuses, showed the fastest annual growth since 2009, with pay up 3.1 percent on the year during the three months to the end of August.

Faster pay growth against a backdrop of weak productivity and labour shortages is a key reason why the Bank of England wants to raise interest rates over the medium term, despite a slowdown in overall economic growth since 2016's Brexit vote.

The REC data showed demand for both permanent and temporary staff picked up in October, while the availability of staff contracted by the most in nine months.

© Reuters. Workers are seen in the More London district, with Tower Bridge behind during the morning rush hour in London

Shortages of IT workers, engineers, nurses and care staff were particularly widespread.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.