Salary inflation at nine-year high

News Article - 09 June 2009
Category: Business

Salary inflation has risen to its highest level since May 1998, a study has shown.

According to the latest report by auditor KPMG and the Recruitment & Employment Confederation (REC), July saw market conditions tighten and the labour market become more upbeat, iii.co.uk reports.

Demand for permanent staff increased to its strongest point for more than seven years which in turn led to higher wages.

Michael Carter, people services partner at KPMG, said: "July's survey results continue to reflect a buoyant labour market."

However, he added that the availability of workers had fallen over the past two years and urged employers to be creative in how they recruit people.
Efficient graduate recruitment programmes could help companies source skilled staff to help their businesses grow, the website suggests.

Helen Reynolds, acting chief of the REC, said that the results should spur the government on in its furthering of skills strategy, Recruiter Magazine reports.

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