The Bank of England has continued to receive divergent signals from the labour market, which has complicated the outlook for rate cuts. The latest survey from KPMG and the Recruitment and Employment Confederation (REC) showed that starting salary inflation for permanent roles increased at its fastest rate for eight months in June. The survey suggested that firms were willing to bolster starting pay to attract the best candidates. Temporary pay rates also rose further, albeit slower than in May. Yet, the survey also showed a further decline in demand for workers, partly due to the election. Continue reading here 👇 https://lnkd.in/euCF9Hc7
City AM’s Post
More Relevant Posts
-
Labour market slowdown might be coming to an end raising questions for Bank of England as it considers when to start cutting interest rates. Although the number of staff appointed to permanent places continued falling in April, the pace of decline was much slower compared to previous months, according to KPMG and the Recruitment & Employment Confederation’s (REC) latest report on jobs. The survey also showed that starting salaries continued to increase at a faster rate in April than in March. This extended the run of starting salaries, which increased faster than inflation, to 38 months. Starting salaries for permanent roles were impacted by the change to the national minimum wage, which increased by nearly 10 per cent in April. Survey respondents also noted that “competition for quality candidates had led to upward pressure” on pay. For temporary roles, starting salary inflation increased at its fastest pace since June 2023. #recruitment #employmentlawuk via City AM
To view or add a comment, sign in
-
Incredibly disappointing to once again see public sector pay reported with an inaccurate narrative. Public sector pay alone has not contributed to salary inflation and cannot be held to blame for any economic impact of salary rises. The reality is quite different, the public sector is full of incredibly committed and talented people who make a real impact on a daily basis under increasingly difficult financial circumstances. The £1,500 bonus referenced in this piece was a one time payment to alleviate a cost of living crisis, a burden particularly felt by a number of those working in the public sector. The public sector has actually seen salaries flatline in the last number of years, particularly in senior positions in local government. It would be great to see a more accurate and fair representation of the sector in sections of the media.
Pay rises still too high, warns Bank chief economist
telegraph.co.uk
To view or add a comment, sign in
-
Executive Search Director | Bridging Top Talent with Leading Opportunities in the Insurance Sector | 44 20 4566 9745 | [email protected]
This article provides a critical update on UK wage growth, revealing a slight slowdown as the Bank of England considers potential interest rate cuts. C-suite leaders in the insurance sector should pay close attention to these economic shifts as they can significantly impact strategic hiring, business development, and financial planning. Understanding how wage growth trends influence the broader market is vital for aligning your organisational strategy with the evolving economic landscape.
UK wage growth slows slightly as Bank of England mulls rate cuts
msn.com
To view or add a comment, sign in
-
Director of Chameleon-i Ltd, specialist in CRM/ATS cloud based recruitment solutions Chameleon-i and TheTimeGenie.
The Bank of England is under increasing pressure to consider lowering interest rates in an attempt to boost a flagging job market due to the slowing rate of pay growth and declining demand for workers. The Bank of England has reiterated its stance that containment in salary increases is necessary before contemplating a reduction in interest rates from the current level of 5.25%. Plus, despite the economic downturn, unemployment has remained historically low at 3.8%, attributed to businesses retaining workers to avoid protracted and costly recruitment processes. More on this here: https://bit.ly/4a3D1f6 #InterestRates #UnemploymentRates #SalaryGrowth
Dwindling pace of wage growth puts pressure on Bank to cut interest rates
bmmagazine.co.uk
To view or add a comment, sign in
-
In 2024, UK employers have revised annual pay settlements downwards to alleviate inflationary pressures, as disclosed by a survey conducted by XpertHR. Read more: https://bit.ly/3wBJO0K The survey, encompassing 57 pay awards and over 180,000 employees, demonstrated a reduction in median pay settlements from 6% to 5.1%. This adjustment corresponds with the Bank of England's concerns regarding declining consumer price inflation rates. Despite average wages increasing by 6.2% in the past year, they persist above the Bank's targeted inflation rate of 2%. https://bit.ly/3wBJO0K #thehrobserver #hrobserver #UKPaySettlements #InflationaryPressures #WageTrends
To view or add a comment, sign in
-
-
Record UK Wage Growth Keeps Bank of England on Hike Path Companies bid up pay to retain staff in tight labor market Unemployment increases as more people return to jobs market UK wage growth accelerated at the strongest pace on record, underscoring the Bank of England’s concerns that it hasn’t yet broken the wage-price spiral feeding inflation across the economy. Average pay excluding bonuses rose 7.8% in the three months through June compared with a year ago. That was the highest since records began in 2001 and up from the previous reading of 7.5%, which was also revised up, the Office for National Statistics said Tuesday. Economists had expected a figure of 7.4%. #business #finance #financialservices
To view or add a comment, sign in
-
UK #wage growth slowed marginally in the three months to August while job #vacancies fell, boosting the chances that the Bank of England will leave interest rates unchanged at its November meeting. Data from the Office for National Statistics showed that average total pay was 8.1% over the three-month period to August than a year earlier, down from a growth rate of 8.5% the previous month, and below expectations. Regular pay growth, excluding bonuses, slowed from 7.9% to 7.8%. "This total growth rate is affected by the NHS and civil service one-off payments made in June, July and August 2023," the ONS noted. The number of job vacancies in the July to September period was 988,000, a decrease of 43,000 from April to June, the 15th consecutive quarterly fall. Vacancies fell in 14 of 18 industry sectors surveyed. In July to September 2023, total vacancies were down by 256,000 from the level of a year ago, although they... More at #Proactive #ProactiveInvestors http://ow.ly/s11e104Y30W
Cooling wage inflation supports interest rate pause
proactiveinvestors.co.uk
To view or add a comment, sign in
-
The Bank of England is under increasing pressure to consider lowering interest rates in an attempt to boost a flagging job market due to the slowing rate of pay growth and declining demand for workers. The Bank of England has reiterated its stance that containment in salary increases is necessary before contemplating a reduction in interest rates from the current level of 5.25%. Plus, despite the economic downturn, unemployment has remained historically low at 3.8%, attributed to businesses retaining workers to avoid protracted and costly recruitment processes. More on this here: https://bit.ly/4a3D1f6 #InterestRates #UnemploymentRates #SalaryGrowth
Dwindling pace of wage growth puts pressure on Bank to cut interest rates
bmmagazine.co.uk
To view or add a comment, sign in
-
UK jobs market cools despite strong wage growth 📈. Nicholas Hyett, CFA. Richard Carter, CFA. The UK unemployment rate rose to 4.4% as annual wage growth levels remained elevated for the February to April quarter, putting pressure on the Bank of England's possible interest rates path. Check out Sorin-Andrei Dojan's latest article👇 https://incm.pub/3RkKBe0 #investing #assetmanagement #wealthmanagement #finance
To view or add a comment, sign in
-
-
Falling #inflation will ease pressure for high #pay awards : The Resolution Foundation says Bank of England concerns over the high level of pay awards are likely to be eased as wage settlements come down in response to the annual inflation rate falling. While the Bank has cited strong earnings growth as a reason for adopting a cautious approach to cutting interest rates, the think-tank says there are already signs of wage settlements coming down. It said the typical pay settlement has fallen from 6% to about 5% since the start of 2023, while the monthly increases in wage growth had halved from an average of 0.8% between January and May to 0.4% a month between June and September. @Hannah Slaughter, a senior economist at the Resolution Foundation, said: “The big recent fall in inflation should ease the pressure on pay settlements, and help to bring about more normal wage rises and price increases next year.” She added: “Ultimately, Britain needs to get back to delivering productivity-based pay rises, rather than inflation-inducing ones.” #wagesandsalaries #costofliving #employmentlawuk via The Guardian
Falling UK inflation will ease pressure for high pay awards, says thinktank
theguardian.com
To view or add a comment, sign in