Skills Shortage Leads to Sharp Rise in UK Starting Salaries
Starting salaries for permanent staff increased at their fastest rate for at least 17 years last month as employers struggled to find staff with suitable skills. The number of candidates available to fill vacancies has fallen to an all time low.
The shortages in candidates are particularly effecting business development and sales roles; however the salary rise for new starters suggests a rise in wages across the economy may start picking up after a six year fall.
Employment has grown by 780,000 during the last year – marking the biggest increase in 25 years. However, many people remain reluctant to change jobs possibly due to working arrangements or the employer not doing enough to make new roles seem attractive.
Temporary staff billings rose at the greatest pace for five months, while permanent placements, though expanding, recorded their lowest growth rate since last November. It appears that employers are ready to start paying more in what appears to be a desperate attempt to lure skilled staff from competitors.