Salaries up in London's buoyant jobs market

The London jobs market is buoyant, with an increase in job placements, a rise in pay rates and firm demand for staff, according to the latest London Labour Market Report.

The survey by Halifax Financial Services reveals that almost half of respondents reported an increase in permanent staff pay rates during July as firms compete for qualified candidates.

Up from 61.3 the previous month, the survey's barometer was at 64.0 in July, registering its highest level since November 2000 and indicating further improvement in London labour market conditions.

Employment growth rate last month was at its strongest since December 2003 and demand for permanent staff grew at the second-highest rate for the past three years, reflecting the increased workload of the capital's businesses.

Halifax Financial Services group economist Tim Crawford said: "The London labour market has strengthened over the past few months and there was a clear increase in job placements during July.

"Salary levels also rose over the month as firms paid more to attract qualified staff in the capital."