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Permanent salary growth falls again in UK: KPMG-REC survey

09 Oct '24
2 min read
Permanent salary growth falls again in UK: KPMG-REC survey
Pic: Adobe Stock

Insights

  • There has been a further reduction in permanent placements in the UK during September, extending the current run of contraction to two years, the KPMG and the Recruitment & Employment Confederation UK Report on Jobs found.
  • The survey found clients were cautious in their assessment of the outlook and reluctant to hire staff.
  • Temporary worker billings were also lowered for a third successive month.
There has been a further reduction in permanent placements in the United Kingdom during September this year, extending the current run of contraction to two years, the KPMG and the Recruitment & Employment Confederation (REC) UK Report on Jobs survey revealed.

The latest contraction was slightly softer than August’s five-month record.

The survey, compiled by S&P Global, found clients were cautious in their assessment of the outlook and reluctant to hire staff. Temporary worker billings were also lowered for a third successive month.

Although finding suitable candidates remained challenging, a general expansion of staff availability and reduced demand weighed on permanent salary growth during September.

Latest data showed the weakest rise in salaries for over three-and-a-half years. Vacancy numbers meanwhile declined for an eleventh successive month during September, with falls recorded for both permanent and temporary workers.

Uncertainty in the outlook, including around government policy ahead of late October’s Budget, meant companies were cautious in their hiring activity.

Although there remained reports of shortages in suitable candidates, which helped to boost pay rates, permanent staff salary growth eased again in September. It was the third month in a row that salary inflation has fallen, and September’s reading was the lowest since February 2021, an REC release said.

A greater number of candidates and reduced demand helped to limit pay growth, according to panelists.

The reduction in permanent placements was common across all regions of England. The steepest decline was seen in the South of England, and the smallest in the Midlands.

ALCHEMPro News Desk (DS)

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