Xinhua, London :
A report said Friday that demand for staff in Britain increased at the fastest pace in 16 years last month, fueling strong pay growth and enhancing the expectations for an interest-rate hike of the Bank of England (BOE) .
A job-vacancy index increased to 68.2, the highest since 1998, from 68 in July, said the Recruitment & Employment Confederation (REC) and KPMG. Both the private and public sectors saw increased demand, with the former recording the sharper growth.
Permanent staff salaries continued to rise at an elevated rate in August, with the latest increase only slightly slower than June’ s survey-record. Temp pay also rose strongly, and at a faster pace than in July.
The pay growth supported the view among a BOE minority that it’ s time to raise interest rates.
Two out of the nine-member Monetary Policy Committee (MPC) of BOE have voted to raise benchmark interest rate in August. The two members said a continued rapid fall in British unemployment meant it was more likely that wage growth would pick up.
The expectations for an interest-rate increase in the coming 12 months jumped to the highest in more than three years as the economic recovery strengthened, said the BOE Friday.
Investors will find out if any more policymakers voted in favour of raising interest rates in two weeks, after two MPC members broke ranks in August.
