LONDON, March 11 Reuters Britain39;s labour market slowed sharply in February as recruitment firms reported the biggest drop in demand for staff from employers since the coronavirus lockdown of early 2021, a survey showed on Monday.

The Recruitment and Employment Confederation REC trade body and accountants KPMG said their monthly index of demand for staff fell to 46.9 in February from January39;s 49.4, the lowest reading since January 2021.

The survey pointed to a steep contraction in permanent staff hiring, while temporary staff billings shrank at the fastest rate since July 2020.

Starting salaries for permanent staff rose at the weakest rate since March 2021 something that Bank of England officials are likely to note as they seek evidence that inflation pressures are receding before voting to cut interest rates.

This month39;s survey shows the market slowing, and a concerning increase in the decline in temporary billings, REC chief executive Neil Carberry said.

A BoE survey on Thursday showed businesses expect to increases staffing levels at a slower pace than previously, consistent with other signs that Britain39;s job market is cooling.

Expected wage growth for companies in the BoE survey was unchanged at 5.2 for the coming year on the threemonth moving average basis which the BoE focused on, although on a singlemonth basis it dropped to 4.9, the lowest since May 2022.

Many economists expect official data due on Tuesday to show a further moderation in pay…