Pay:
Fastest rise in starting salaries for eight months:
There was an acceleration of permanent salary inflation during June. According to the latest data, starting salaries rose to the greatest degree since last October and have now
increased for 40 months in a row. Pay was being increased to attract good candidates, who themselves were generally willing to demand greater pay given ongoing cost of living pressures. Latest data showed that, by broad English region, London experienced the steepest rise in average starting salaries. The weakest growth was
found in the South of England.
Temporary pay inflation softens to three-month low:
Temp pay rates continued to rise in June, extending the current trend of inflation to 40 months. However, unlike permanent pay, the degree to which temp wages increased was
the lowest since March. Where pay growth was registered, this was linked to cost-of-living expenses and a dearth of suitable candidates. April’s increase in minimum and national living wage levels was having a broader inflationary impact on general pay rates. The fastest increase in temp rates was seen in the North of England, the slowest in the South of England.
Official Data: UK Average weekly earnings:
Total employee earnings (including bonuses) rose at an unchanged annual pace of 5.9% in the three months to April, according to the latest data from the Office for National
Statistics (ONS). Public sector pay growth remained quicker than in the private sector. For the latter, annual pay growth slipped a little to 5.8% (from 6.1%). In contrast, a 6.3% increase for public sector pay was the best since the three months to November 2023.