LONDON (Reuters) - British employers hired permanent staff last month at the slowest pace since October as a shortage of available workers caused the labour market to slow, a survey of recruitment firms showed on Friday.
Growth in starting salaries for permanent workers also slowed from the three-year high hit in May, the monthly report from the Recruitment and Employment Confederation (REC) and accountants KPMG showed.
The survey, watched by the Bank of England as a guide of the labour market’s health, also suggested uncertainty around the economy may be making some workers reluctant to switch jobs, nine months ahead of Britain’s exit from the European Union.
“Across the majority of sectors, both temporary and permanent opportunities are growing, and a lack of candidates means it is no surprise to see starting pay also rising,” REC chief executive Neil Carberry said.
“Recruiters report that some of this high vacancy rate may be driven by good demand from companies not being matched by candidate willingness to move in the face of the current economic uncertainty.”
On Thursday BoE Governor Mark Carney said pay growth in Britain was strengthening, contributing to inflation pressure that the central bank thinks will necessitate higher interest rates over the next few years.
Reporting by Andy Bruce; Editing by Jan Harvey