British salaries rise in January at slowest pace since 2013, REC reveals

Starting salaries in the UK for permanent and temporary jobs rose in January at the slowest pace since October 2013, a survey revealed on Friday.

The report from the Recruitment and Employment Confederation and Markit said while last month job vacancies reached a five-month high, wage growth eased.

It comes a day after the Bank of England cut its forecast for British wage growth in its Inflation Report, fuelling speculation that an interest rate increase is a long way off.

The REC/Markit survey showed there was a higher demand for permanent staff than temporary employees last month.

The private sector offered more jobs than the public sector. Specifically, nursing and medical care for permanent staff were the most needed of professions, followed by executive and professional jobs.

Construction, hotel and catering experienced marginal declines in January.

“Professional service jobs are among those leading the way, with marketing and commercial roles especially in demand as businesses seek to make the most of the good economic climate,” said REC chief executive Kevin Green.

“It’s not all good news. Organisations in sectors such as construction and manufacturing are finding it increasingly difficult to recruit due to entrenched skill shortages. The healthcare sector is also a source of concern. A severe shortage of nurses is being exacerbated by the government cutting pay for temporary doctors and nurses.”