Key market points:
- Permanent placement growth softens to nine-month low…
- Staff vacancies expand at quickest rate since last November
- Decline in candidate availability eases, but remains historically sharp
The rise in interest rates for only the second time in a decade may leave some people feeling the pinch. But a new job is one way people can ease the burden on their finances. With our data showing starting salaries continuing to rise, the latest official government figures suggest that we are finally seeing the effects of a tighter labour market feed through to pay.
Softer rise in permanent staff appointments…
Permanent placements continued to rise sharply in July, though the rate of expansion was the softest recorded since last October.
…as supply of candidates continues to drop markedly
A candidate shortages weighed on permanent recruitment. The supply of permanent candidates fell sharply in July, despite rates of decline easing to the weakest in three months.
Staff vacancies rise at quicker pace…
Demand for staff strengthened further in July, with overall job vacancies expanding at the quickest rate for eight months.
…maintaining upward pressure on pay
Low candidate availability and robust demand for staff led to a further steep increase in salaries awarded to permanent starters.