# UK recruiters slow pace of pay growth in March, REC survey shows
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-12
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Labour Market Shows Signs of Slowing Pay Growth,
Meta Description: Find out why the UK labour market is experiencing a slowdown in pay growth and improved candidate availability, according to a recent survey.
URL: https://financedigest.com/uk-recruiters-slow-pace-of-pay-growth-in-march-rec-survey-showshtml

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By Suban Abdulla

LONDON (Reuters) – Britain’s labour market showed signs of a slowing in the sharp pace of pay growth in March and a shortage of candidates eased for the first time in two years, according to a survey of recruiters published on Wednesday.

The Recruitment and Employment Confederation/KPMG said increases in starting salaries for permanent staff were the second-weakest in nearly two years, but remained high in historical terms.

Starting [salaries for temp roles](https://www.financedigest.com/top-10-financial-services-roles-set-for-highest-salary-increases-in-2018.html "Top 10 financial services roles set for highest salary increases in 2018") eased moderately to a three-month low.

The Bank of England, which has raised interest rates 11 times since December 2021 to curb a surge in inflation, is worried about cost pressures in the [jobs market but has said it expects pay](https://www.financedigest.com/best-paying-jobs-in-industrial-specialties.html "Best paying jobs in industrial specialties") growth to weaken.

REC’s monthly permanent placements index came in at 49.3 last month, the slowest [fall since](https://www.financedigest.com/biggest-uk-house-price-fall-recorded-since-financial-crisis.html "Biggest UK house price fall recorded since financial crisis") last September but still below the 50.0 no change level.

Billings for temporary workers, which often [increase when employers are cautious](https://www.financedigest.com/should-we-be-more-cautious-about-contactless-1-in-4-young-adults-with-contactless-cards-say-theyve-increased-their-spending.html "Should we be more cautious about contactless? 1 in 4 young adults with contactless cards say they’ve increased their spending") about the outlook, rose at the fastest pace in six months.

Neil Carberry, REC’s chief executive, said the jobs market was now flat rather than [falling and he expected pay](https://www.financedigest.com/uk-employers-see-slight-fall-in-pay-awards-over-2023-xperthr.html "UK employers see slight fall in pay awards over 2023 – XpertHR") to keep on growing as shortages in some skills and cost-of-living pressures persist.

The continuing fast [rate of pay](https://www.financedigest.com/beat-the-exchange-rate-and-buy-that-dream-holiday-home-by-paying-in-pounds.html "Beat the exchange rate and buy that dream holiday home – by paying in pounds! ") growth is likely reflective of the impact of inflation on wage offers, as well as low labour supply,” Carberry said.

Vacancies ticked up further in March although the pace of growth eased slightly from a four-month high in February.

The availability of staff rose for first [time since](https://www.financedigest.com/soccer-arsenal-reach-womens-champions-league-semis-for-first-time-since-2013.html "Soccer-Arsenal reach Women’s Champions League semis for first time since 2013") February 2021, with some recruiters saying redundancies helped increase the supply of workers.

Candidate availability improved for the first [time in over two years](https://www.financedigest.com/30-years-of-excel-lence-time-to-move-on.html "30 YEARS OF EXCEL-LENCE: TIME TO MOVE ON?") as people regained the confidence to look for new roles, but economic uncertainty caused firms to make redundancies and often opt for temporary hires over permanent placements,” Clare Warnes, partner for skills and productivity at KPMG UK said.

(Reporting by Suban Abdulla; Editing by William Schomberg)


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