Research into the UK labour market has revealed that starting salaries and temp wages have increased at the quickest rates seen in almost 25 years. KPMG and the Recruitment and Employment and Confederation’s (REC) most recent UK Report on Jobs shows that, at the start of the fourth quarter of 2021, the overall availability of staff declined.
The report says that this decline is due to high demand for staff, general shortages, fewer foreign workers and job-switching hesitancy amongst employees. The steep decline in the supply of labour has had the knock-on effect of rapidly driving up temp and starting pay rates.
Kate Shoesmith, Deputy CEO of the REC, said: “This latest data shows the robust growth in the jobs market continuing. Starting salary growth has reached another record high as shortages continue to bite and companies compete to hire the staff they need. But we are starting to see signs that we are moving into a new phase of the recovery, as the initial bounceback in demand starts to ease.”
The demand for temporary staff was highest in nursing and care, closely followed by hotel and catering. While the trend can be seen across the whole country, temporary wages have grown at the fastest rate in the North of England while the slowest upturn was in the Midlands.
Umbrella.co.uk Director Miles Grady said: “With the economy still in a fragile position after the pandemic, temporary workers have a vital role to play in the recovery. In the current labour market, organisations will need to offer the best rates of pay in order to attract the best talent.”
Neil Carberry, chief executive of the REC commented: “It is essential that the government works in partnership with business to deliver sustainable growth and rising wages, rather than a crisis-driven sugar rush.”
Author: Steven English