Staff salaries see highest growth in 20 months

The rate of inflation of permanent staff salaries accelerated to a 20-month high in February, according to February’s Report on Jobs published by the Recruitment and Employment Confederation (REC) and KPMG.

The report also found employees are able to demand higher levels of pay. In some cases, these higher salaries were linked to shortages of qualified staff.

However, there were also reports of candidates becoming more confident in their outlook and subsequently pushing for enhanced pay packages.

Bernard Brown, partner and head of business services at KPMG, said: “The latest figures seem to confirm the UK job market is on the road to recovery.

“Permanent job placements are growing at their fastest pace since July 2007, with both vacancies and salaries increasing.”

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