LONDON, May 10 (Reuters) - British firms reduced hiring
of permanent staff via recruitment agencies at the fastest pace
in more than two years, a survey showed on Wednesday, a day
before the Bank of England announces its latest move to tackle
inflation pressure.
The Recruitment and Employment Confederation/KPMG said
temporary hiring - which often increases when employers are
uncertain about the economic outlook - rose at the fastest pace
in seven months.
"Firms are hedging their bets," REC Chief Executive Neil
Carberry said. "After a better month in March, in April we saw
permanent hiring fall back quickly and businesses turn to temps
to help them through. London had a particularly difficult
month."
The REC survey showed staff availability increased for the
second month in a row in April as some companies laid off
workers and people sought better-paid work to help cope with an
inflation rate that remained above 10% in March.
Salaries for people starting permanent roles increased at
the fastest pace in four months, something likely to be noted by
the BoE as it worries about the jump in inflation turning into a
long-lasting problem for Britain's economy.
Most investors and economists expect the BoE to increase
Bank Rate for the 12th meeting in a row on Thursday.
(Reporting by William Schomberg, editing by Andy Bruce)
Reuters Messaging: william.schomberg.reuters.com@reuters.net))
