UK wage increase rate hits seven year high

Wage pressures in the UK economy jumped dramatically during May, rising at an 83-month high rate.The rise is likely to concern rate-setters at the Bank of England, according to KPMG and the UK’s Recruitment and Employment Confederation (REC).
In a monthly survey of the labour market, KPMG and REC found that permanent staff salaries rose at an 83-month high rate in May as a result of hardening demand for staff and increased skills shortages.
Temporary staff pay inflation also accelerated during May to a level broadly in line with March’s 28-month peak.
Michael Carter, people services partner at KPMG says: “With demand for staff reportedly increasing but availability deteriorating, pay pressures are intensifying, particularly for permanent staff.”