Record rise in starting wages as supply collapses

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An unprecedented drop in candidate availability and greater competition for workers has resulted in a record increase in starting salaries for permanent staff and a sharp increase in salaries for short-term roles, according to the latest monthly figures from the REC .

The Confederation for Recruitment and Employment and the KPMG Jobs Report reported another rapid increase in hiring activity in August, as improving business confidence led employers to rise their resource plans. Compiled by IHS Markit from a survey of 400 recruitment and employment firms, the latest data set on permanent and temporary hiring activity, compensation and candidate availability is breaking multiple records. The number of vacancies increased rapidly during August, slightly below the all-time high in July, as demand for permanent and temporary staff remained robust. But the supply of candidates has deteriorated considerably since the start of the REC survey in 1997. Data showed that unprecedented declines in the supply of permanent candidates and the supply of temporary staff were largely associated with reluctance of employees to change jobs due to the pandemic, fewer EU workers, staff on leave and skills shortages. Increased competition for staff put upward pressure on starting wages, with wages for new permanent hires increasing at the fastest rate on record, while inflation for agency wages was the second fastest on record . Claire Warnes, Head of Education, Skills and Productivity at KPMG UK, said: “The shortage of candidates continues to weigh on companies, which all recruit from the same talent pool and struggle to fill the gaps. gaps. While record permanent placements and higher starting salaries mean there remains a market of job seekers, recruiters and employers have experienced the most severe drop in candidate availability in US history. survey and think about how to attract and retain new employees. Neil Carberry, CEO of REC, said: “Recruiters are working around the clock, putting more people to work than ever before, as these numbers show. The start of the whole economy over the summer created a one-time peak in demand and a short-term crisis. But he said it would be a mistake for companies to think it was a short-t

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