Pay:
Starting salaries increase again:
Extending the current period of inflation to three-and-a-half years, typical permanent salaries rose again in August – albeit at the slowest rate since March. Clients remained willing to pay higher salaries to attract suitable staff, especially in areas where the supply of candidates remained low. Latest data showed that the strongest uplift in starting salaries was in the North of England, followed by London. Solid salary rises were recorded in the Midlands and South.
Marginal increase in temp pay rates:
Pay rates for temporary workers rose in August, but at the slowest pace in the three-and-a-half years in which inflation has been registered. Competition for suitable candidates helped to bolster pay, but greater staff supply helped to limit the increase. Pay growth was centred on the Midlands and the North of England as rates fell in London and the South of England.
Official Data: UK average weekly earnings
Total employee earnings (including bonuses) rose by 4.5% compared to a year ago in June, the lowest annual increase recorded since November 2021. Whilst there was a softening in private sector earnings growth to 5.0%, from 5.6% in May, the more noticeable slowdown came from the public sector where earnings rose by just 1.9% on the year in June, down sharply from 6.4% in the previous month.