Summary
Starting salary inflation weakens to four-year low:
The rate of starting salary inflation slowed for the second straight month in February. The respective seasonally adjusted index posted its lowest reading in four years and one that was well below the survey’s average. There were reports that pay rates were showing signs of levelling off, which in turn was linked to weaker demand for staff, improved candidate numbers and tighter budgets. Temp pay growth meanwhile remained marginal.
Availability of workers increase at quicker pace:
February data indicated faster increases in the availability of candidates for both permanent and temporary roles. Recruiters frequently attributed the upturn in staff availability to redundancies and fewer job opportunities amid a weaker economic backdrop. Overall, candidate supply increased at a sharp rate that was broadly in line with the average seen over 2024 as a whole.
Recruitment consultancies signalled a reduction in overall vacancies for the sixteenth month running in February. Notably, the respective seasonally adjusted index held close to January’s 53-month low and was consistent with a substantial drop in demand for workers. Permanent vacancies continued to decline at a slightly sharper pace than that seen for temporary roles