Salaries rise in buoyant London job market
13 August 2007
The London jobs market strengthened in July, with a rise in job placements and firm demand for staff, according to the latest London Labour Market Report from Halifax Financial Services. Pay rates also rose during the month as firms competed for qualifying staff.
At 64.0 in July, up from 61.3 in the previous month, the report’s unique ‘Barometer’ registered its highest level since November 2000 and pointed to a further improvement in London labour market conditions. The latest index reading also marked four consecutive years of expansion.
Tim Crawford, Group Economist at Halifax Financial Services, commented: “The London labour market has strengthened over the past few months and there was a clear increase in job placements during July. Salary levels also rose over the month as firms paid more to attract qualified staff in the Capital. By industry, healthcare workers are enjoying the strongest demand at the moment.”
Wages and salaries
Almost 44% of survey respondents reported an increase in permanent staff pay rates during July, reflecting competition for skilled candidates. This was the largest rise since May 2000.
Around 26% of survey respondents reported an increase in temp/contract staff pay rates in July. The rate of wage inflation in London remained broadly in line with the UK average.
Employment
More than half of the survey panel reported a rise in placements during July. The growth rate was the strongest since December 2003.
Average weekly billings for temporary/contract staff rose for a fiftieth consecutive month in July.
Vacancies
Demand for permanent staff grew at the second-highest rate for the past three years, largely reflecting increased workloads at businesses in the capital.
There continues to be growth of demand for short-term staff. The latest increase was the strongest since September 2000.
Availability
July’s deterioration of permanent staff availability was stronger than the UK average, with more than 45% of survey respondents indicating a fall in availability.
The number of candidates available for temporary/contract employment declined for the seventeenth month running in July, and the latest fall was the largest for six-and-a-half years.
Sectoral
July data pointed to a broad-based improvement in demand for staff in the capital.
Nursing/Medical/Care workers were the most in-demand permanent candidates, as well as the most sought-after temporary/contract staff during the latest survey period.
