–KPMG/REC: UK Mar Permanent Placements 59.7 Vs 62.7 In Feb
–KPMG/REC: UK Mar Vacancies Index 60.8 Vs 60.4 In Feb
–KPMG/REC: UK Mar Temporary Staff Billings 58.8 Vs 61.5 Feb
–KPMG/REC: UK Mar Permanent Salaries 55.3 Vs 53.7 Feb

LONDON (MNI) – UK permanent and temporary job placements grew at a
slower pace in March but wage inflation picked up with permanent
salaries rising at their fastest rate in eight months, according to the
latest KPMG/REC survey of the UK labour market.

The survey, compiled by Markit Economics, showed that despite the
rise in permanent salaries wage growth was still running below its long
run average, while vacancies continued to increase and growth in staff
availability slowed.

The permanent staff placements index fell to 59.7, down from
February’s 10-month high of 62.7.

Temporary and contract billings pulled back to 58.8 from
February’s 61.5.

Jack Kennedy, Senior Economist at Markit Economics, told Market
News International: “The slowdown in growth of recruitment activity
during March was attributed by consultants to a sense of uncertainty
creeping into the market, in turn reflecting concerns over the economic
outlook and impact of public sector spending cuts.”

“Nevertheless, both permanent and temporary jobs still rose at
robust rates, while overall vacancy levels increased at the fastest pace
for almost a year, so the overall picture remains relatively positive,”
he added.

The KPMG/REC survey showed the fastest rise in permanent salaries
in eight months, though at 55.3 it was slightly below the survey’s
average. Permanent salaries were last higher in July 2010, when the
index stood at 56.1.

Temporary staff pay rates fell to 52.6, slightly below February’s
52.7.

“Although permanent salaries rose at the sharpest rate for eight
months in March, this measure remained slightly below its long-run
average, and is historically consistent with annual earnings growth
below the 4% rate likely to worry the Bank of England over
‘second-round’ inflation effects taking hold,” Kennedy said.

Permanent staff vacancies rose to their highest level in just under
a year – climbing to 60.9 from 60.4 in February.

Temporary and contract staff vacancies advanced to 59.8, the
highest level since July 2007 when it was 60.1.

Permanent staff availability fell from February’s 51.5 to 50.3. The
availability of temporary staff fell to 53.9 in March from 57.0 in
February, which is its lowest level since August 2010.

Kevin Green, Chief Executive of the Recruitment and Employment
Confederation, said in the press release: “The jobs market is still
growing but at a slower rate than in February. The report again
highlights that the UK has a two-speed labour market with the private
sector creating jobs as the public sector reduces employment.”

–London newsroom: 4420 7862 7492; email sanjukta.moorthy@ntkn.com
email ukeditorial@marketnews.com

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