LONDON – The growth rate of UK permanent jobs and temporary
jobs slowed to a 10-month low in August and salary growth was softer,
the latest Markit survey of the labour market for KPMG/REC found.
The data add to the evidence of weak UK job creation, with the
economy going through a soft patch in the third quarter. The KPMG/REC
survey found both permanent and temporary staff appointments grew at
their slowest rate since last October, with permanent staff salaries
rising at the slowest rate for seven months and temporary staff pay
growth the weakest for five months.
The permanent placements index fell to 56.3 in August from 60.2 in
July, its lowest level since October last year. While still well above
the 50 contraction/expansion level, this was the fifth consecutive
monthly deceleration in placements growth from March’s peak.
The temporary/contract staff billings index fell to 54.0 in August
from 54.3 in July.
The permanent salaries index dropped to 53.0 in August from 56.1 in
July, while the temporary pay rates index fell to 51.6 from 51.8.
Martin Weale, a newcomer to the Bank of England’s Monetary Policy
Committee, said in his first interview since taking the job that he
shared the belief UK unemployment is likely on its way higher.
“I am very comfortable with the view that there is slack in the
economy, that unemployment is likely to rise further and, the way things
are developing, I find it hard to see that there are unusually
substantial upside risks to inflation,” Weale said.
The latest KPMG/REC report found growth in jobs vacancies also
slowed. The vacancies index fell to 56.4 from 57.7.
Despite the slowdown in jobs growth, the survey found staff
availability declining, with this index falling to 45.7 from 49.1
–London newsroom: 4420 7862 7491; email ukeditorial@marketnews.com
[TOPICS: M$B$$$,MABDS$]
