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UK Permanent Job Placement Growth Remains Strong In March

Job placements in the UK increased at a stronger pace in March, while salaries rose at the fastest rate in six months, data from a survey by Markit Economics and KPMG revealed Friday.

Permanent job placements in March rose at a rate unchanged from the previous month's considerable pace. Meanwhile, temp billings growth was only slightly slower than the five-month high of February.

The number of job vacancies climbed to a five-month high in March, underpinned by robust demand for staff.

Average starting salaries for people enrolled in permanent job roles increased further in March and the latest rise was the strongest pace since last September.

At the same time, the availability of staff to fill vacancies continued to drop in March and the recent fall was the sharpest in four months.

"This tightening labour market is forcing up wage inflation as businesses bid for the best talent. Such a trend could cause a two-tier pay market, creating a significant divide between highly paid new starters and current employees receiving subdued pay increases," Bernard Brown, Partner and Head of Business Services at KPMG, said.

"This dynamic will cause businesses problems in the long term as they struggle to keep hold of talented staff increasingly dissatisfied by their remuneration packages."

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