Latest survey data signalled a further rise in permanent staff placements in the capital, but the latest increase was only modest and the smallest in the current twenty-eight month period of growth.
London recruitment consultancies indicated that average salaries for permanent staff rose at the slowest pace in twenty months in September. Slower growth in pay rates was attributed mainly to easing demand for staff at employers.
The report's unique 'Barometer' signalled an improvement in London labour market conditions in September. However, the rate of improvement was the slowest in over two years. All four components of the Barometer made weaker (albeit still positive) contributions in September - staff appointments, demand for staff, availability for work and employee pay.
Commenting, Tim Crawford, Group Economist at Bank of Scotland, said: "Although the London job market grew slightly in September, the pace of expansion was the slowest in more than two years. The high street slowdown and higher oil prices has clearly made businesses more cautious with their hiring intentions, particularly for permanent staff. Skill shortages in the capital have also played a part in the recent labour market slowdown."
