Rates of pay slow, but remain strong

A new report has revealed that although rates of pay have softened, figures remained strong in the context of historical data.

The latest KPMG and REC UK Report on Jobs survey also found that while permanent placements fell for the third month in a row, billings for temporary workers rose modestly.

Looking at a regional analysis, the South of England saw the steepest rise in temp billings compared to any other English regions, and vacancies increased in seven of the ten broad employment categories.

Retail, Hotel & Catering and Nursing/Medical/Care saw the steepest rises in demand.

Neil Carberry, Chief Executive of the REC, said, “The big test of the labour market will come this month. But overall activity levels remain high, with vacancies and starting rates of pay still growing.

“There is also plenty of demand for temporary workers, which is less affected by employer’s long-term confidence. The overall picture is still of a robust labour market, although contraction in sectors such as construction is a particular concern given its significance to the health of the economy.

“As we move into 2023, the need to ensure our labour market can deliver economic growth and prosperity should be a critical concern to politicians. People telling recruiters that they are increasingly anxious about moving jobs is a concern in this regard – as a move is a great way to boost pay and build up skills.

“If people are less willing to move jobs, this could make shortages worse in the near term. That is why a stable economy, and support to address labour and skills shortages – from welfare to work support to immigration and skills reform, need to be major priorities for all the UK governments.”

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