UK wage growth drops to a three-and-a-half year low as job vacancies decline

KPMG/REC survey

Wage growth for permanent staff positions in the UK continued to ease for the third month in a row in September, according to a survey closely watched by the Bank of England.

Figures in the KPMG and REC UK Report on Jobs survey marked the lowest increase in permanent salaries since February 2021, as a higher number of job candidates and contracted demand for workforce pulled the brakes on pay growth. KPMG group CEO Jon Holt said the fall in salary inflation came on the back of "the overall pool of available candidates [growing] as companies are still faced with tough decisions on their headcounts". Bank of England chief economist Huw Pill cautions against cutting rates 'too far or too fast' "The Bank of England will likely be encouraged by this easing i...