According to a study of recruitment agencies released on Wednesday, the beginning pay for employees hired for permanent employment grew at its slowest rate in nearly two years in January, adding to other indicators that the British labor market is cooling.
The Recruitment and Employment Confederation reported that cautious companies were turning more and more to temporary employment, as the Bank of England was concerned about the inflationary heat in the labor market as it considered whether to stop rising interest rates.
The remuneration for temporary workers increased last month as a result of temporary worker billings growing at their quickest rate since September.
The poll revealed that hiring of permanent employees decreased and that their starting pay increased at the slowest rate in 21 months, despite the fact that the increase was still significant by historical standards.
As the rate of rise in the number of jobs listed for permanent personnel rose for the first time in nine months, there were some indications of rising employer confidence, according to REC.
Activity levels are still strong for both permanent and temporary employment as compared to last summer and fall, when the permanent downturn began, according to REC CEO Neil Carberry.
According to BoE Governor Andrew Bailey, statistics on the labor market will be crucial for determining how swiftly inflation declines. The BoE increased borrowing prices for the tenth time in a row to 4% while also making a suggestion that the rate hike cycle was about to come to an end.
The KPMG-sponsored REC poll, which was conducted between January 12 and January 25, was based on replies from a panel of 400 recruiters.