Salaries On The Rise in July
July has seen salaries increase according to data from a leading recruitment agency.
Reed's Salary Index, an index based upon all jobs posted onto the Reed website during the month, revealed that salary increased by one point to 99 in July, just one point off of the high in 2009. This shows that employees starting new jobs are seeing salaries recovering.
Martin Warnes, Managing Director, reed.co.uk, says: “Economic confidence at the start of the third quarter appears to have flattened out, according to the latest Reed Job Index figures. There is residual fragility in the economy which has dampened demand for new staff and continues to restrain salaries.
"However job demand is still 20 per cent up on this time last year and July’s figures include other positive indications for the future. New jobs increased in key sectors from IT and Telecoms to Construction and the car industry, which looks promising for long term growth, while the 19-month high in retail recruitment suggests employers believe consumer confidence is set to rise."
This continues the trend revealed by the annual CMI Management Salary Survey. This showed that salaries increased by 2.2% over the past year, although this rate had increased at its slowest level for a decade.
Ruth Spellman, chief executive of CMI, says: “It’s reassuring that employers have been able to offer modest pay rises, something we hope indicates that the era of pay freezes may be about to thaw. Of course, no one should believe that the only way to retain employee loyalty is by throwing money around. It’s not practical in the current climate and wider evidence exists to show that money is not the main motivator. What is clear, however, is that employers appreciate that they can influence labour turnover and reduce the churn of staff they want to hold on to.”
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