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UK starting salaries rise in January at slowest pace since 2013 - REC

Fri, 05th Feb 2016 00:01

LONDON, Feb 5 (Reuters) - British starting salaries for newpermanent and temporary jobs rose last month at the slowest pacesince October 2013, according to a survey on Friday which willdo little to quell the Bank of England's unease about a slowdownin wage growth.

On Thursday the BoE cut its forecast for British wagegrowth, a key determinant of future interest rates identified byits governor Mark Carney in a speech last month.

The Recruitment and Employment Confederation said it took apositive view of the labour market, although it warned thatBritain's referendum on European Union membership - likely inJune - could create uncertainty for employers.

Wage growth in Britain slowed in the three months toNovember even though unemployment fell to its lowest level sinceearly 2006, according to official data last month.

Friday's survey showed staff were placed in permanent jobsat a slightly faster rate in January compared with December.However, it pointed to ongoing skill shortages in constructionand manufacturing.

The REC also warned that the government risked exacerbatinga shortage of nurses by cutting pay for temporary nursing staff.

"We believe that patient safety may be compromised," KevinGreen, chief executive of the REC, said.

A separate survey from credit card company Barclaycard, partof Barclays bank, showed consumer spending rose 3.8percent year-on-year in January compared with a 4.0 percent risein January.

It also said around 30 percent of Britons now expect theeconomy to deteriorate in the next three months, up from 18percent in December. (Reporting by Andy Bruce, editing by David Milliken)

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