The UK labour market has unwound tightness, with the latest data on wage growth ebbing to its lowest growth rate in nearly three years.
KPMG/ Recruitment and Employment Confederation (REC) monthly survey of permanent staff salaries
- came in at 55.8 in January, its lowest reading since March 2021
- from 56.5 in December
- pre-pandemic average was 56.7
(readings above 50 show growth)
- gauge of permanent staff placements also eased in January
REC commentary:
- "Pay has normalised, inflation is dropping and the hiring market has been cooling for a year now"
The REC is calling on the Bank of England to begin easing policy.
