Pay for new hires surges at fastest rate in 24 yrs

Pay for new hires surges at fastest rate in 24 yrs

Starting salaries in the U.K. surged at the fastest rate in 24 years as employers try to squeeze more workers out of a shrinking pool of candidates, a survey showed.

Pay for new hires reflects increasing competition for staff to fill jobs that opened with the broadening of pandemic restrictions, KMPG and the Recruitment and Employment Confederation said. Their report indicates inflationary pressure on wages after Britain's exit from the European Union reduced the number of workers.

British companies from retailers to construction firms are struggling to fill gaps in their workforce after Brexit prompted immigration from the EU and the pandemic prompted workers to seek more secure jobs.

'It's a good time for job hunting, said Kate Shoesmith, deputy chief executive of the REC. But she said new immigration rules are key to meet the surge in labor demand. 'Skills shortages have been with us for a while and are getting worse as our data shows.

Vacancies have increased significantly since the survey started in 1997. The number of people finding jobs lost almost as rapidly as the record pace in June.

Hiring permanent roles in London and the Midlands rose the fastest on record, outpacing the South and North East of England. Job vacancies expanded across all sectors, led by IT and computing.