Starting pay in London is rising at the slowest pace since Covid lockdowns, according to the latest London Labour Market Pulse Check.
The influential survey, published by KPMG and the Recruitment and Employment Confederation (REC), compiled by S&P Global and supported by BusinessLDN, found the lowest rate of growth in starting salaries for 37 months.
The pulse reading came to 53.6 for permanent starting salaries and 50.2 for temporary roles, with the 50 mark representing stagnation. The temporary wage growth figure for London is also well behind the national figure. For permanent roles, wage growth in London is roughly in line with the national average.
Meanwhile, the level of new hiring continued to decline. The reading for the number of permanent placements came to 44.5, with any figure below 50 representing decline. It’s the 18th consecutive month of decline, though it’s slower than the previous month.
Anna Purchas, Senior Partner for KPMG’s London office, said: “The persistent economic uncertainty has meant employers delaying investment decisions, including hiring staff, and we’re seeing this slow down wage growth.
“Whilst the economy remains sluggish businesses will continue to proceed with caution about hiring, but they do have plans in place and ready to execute, particularly in sectors such as engineering and technology, as soon as confidence in the wider economy returns.
“Until that confidence improves, sensible employers continue to invest in retaining staff and upskilling their existing workforce.”
Muniya Barua, Deputy Chief Executive BusinessLDN, said: “With Mayoral elections only two weeks away and a general election looming, it’s imperative that the next Mayor and central Government pull out all the stops to free the UK from its low-growth trap.
“In the face of a slowing labour market, improving skills must be at the heart of any growth plan.
“That’s why we’re calling for a new London-wide Careers Service to consolidate existing support, reform of the Apprenticeship Levy to increase take-up and further action to make childcare more affordable and accessible.”
