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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.

Permanent salaries

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.

The REC Report on Jobs is a monthly publication monthly publication produced by Markit and sponsored by the Recruitment and Employment Confederation. The report features original survey data which provide the most up-to-date monthly picture of recruitment, employment, staff availability and employee earnings trends available.