Wage growth eased last month and demand for workers steadied, potentially clearing a path for further interest rate cuts by the Bank of England.
According to research by KPMG and the Recruitment and Employment Confederation, the pace of salary growth for both permanent and part-time staff receded in July.
The permanent staff salary index fell to 56.5 last month from 57.1 in June, still above the 50-point threshold that separates growth from contraction. The temporary salary index dropped to 50.9 from 53.7 in June.
The figures, which are closely watched by the Bank of England owing to accuracy issues with official labour market estimates, demonstrate that pay growth is descending from record highs, partly because tight monetary policy is squeezing demand in the economy. Strong
