Pay Pressures June 2016
The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as well as average hourly rates of pay for temp/contract staff.
Average starting salaries for candidates placed in permanent jobs increased further during June. However, the rate of growth eased to a 33-month low. Those panellists reporting a rise in salaries generally attributed this to competition for candidates with scarce skill sets.
The Midlands posted the fastest rise in permanent salaries and a slightly sharper increase than in May. Elsewhere, salary growth eased.
Temp/contract pay rates
Hourly rates of pay for staff in temporary/contract employment rose further during June. That said, the latest increase was the least marked in three months. The impact of the National Living Wage was again reported as a factor contributing to higher temp pay.
Weaker increases in temp pay were reported in the Midlands, South, North and Scotland. Only London saw an acceleration, but still the joint-slowest rise overall.
UK average weekly earnings
Data from the Office for National Statistics indicated that annual growth of employee earnings (including bonuses) remained at 2.0% in the three months to April 2016. Private sector workers continued to see faster earnings growth than those in the public sector. Construction sector earnings were up 8.4%, the strongest growth since October 2001.