PracticePeople In PracticeWages growth at lowest rate in a year

Wages growth at lowest rate in a year

KPMG report finds wages salary growth is slowing, but says it's too early to judge impact of credit crunch

cash

Wage growth in the UK for permanent staff has fallen to its slowest rate in
more than a year, according to a report from KPMG and the Recruitment and
Employment Federation.

The jobs report showed the index gauging salaries for permanent staff fell to
61.1 from 61.5 in August, a 13-month low.

The slowdown came as demand for permanent staff steadied, with an index
reading of 60.2 versus 60.1 in August.

However, wages for temporary workers have risen in the same period – the
index showed an increase from 58.5 to 59.0.

‘Surprisingly, there are no signs here of any impact from the credit crunch,
but then it is probably too early to look for any,’ says KPMG’s Alan Nolan,
adding: ‘The overall picture of a tight labour market remains.’

The news could strengthen calls for an interest rate cut when the Bank of
England’s monetary policy group meet tomorrow.

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