STARTING SALARIES CONTINUE TO RISE AMID SHARPER DROP IN CANDIDATE SUPPLY - REC
Posted on 22nd February 2022
The latest KPMG and REC, UK Report on Jobs survey signalled a further steep increase in hiring activity at the start of 2022. Permanent placement growth eased slightly since December, however, while the upturn in temp billings gathered pace.
The overall availability of candidates deteriorated at a quicker pace in January, driven by a steeper fall in permanent staff supply. Robust demand for workers and scarce candidates led to further marked upward pressure on rates of starting pay. Starting salaries increased at the third-fastest pace on record, while temp pay growth remained sharp despite easing to a seven-month low. Vacancies data meanwhile showed that demand for workers continued to rise at a historically sharp pace, despite overall growth edging down to its lowest for nine months.
The report is compiled by IHS Markit from responses to questionnaires sent to a panel of around 400 UK recruitment and employment consultancies.
The easing of pandemic restrictions, improved market confidence and strong demand for workers drove a further steep increase in recruitment activity across the UK during January. Robust demand for staff and candidate scarcity drove up rates of starting pay for both permanent and temporary staff at the start of the year. Demand for staff also continued to rise at a historically sharp pace in January. The steepest increase in permanent staff appointments was seen in the South of England, though rates of expansion softened across all four monitored English regions.
Commenting on the latest survey results, Neil Carberry, Chief Executive of the REC, said: "The jobs market is still growing strongly at the start of 2022. Recruiters are working hard to place people into work as demand from employers continues to rise. With competition for staff still hot, companies are having to raise pay rates for new starters to attract the best people. And the cost of living crisis means there is also more pressure from jobseekers who want a pay rise. But pay is not the only important factor - companies must think about all aspects of their offer to candidates to ensure they get the staff they need. This will be important as firms' spending is under pressure from inflation as well.
For more information visit rec.uk.com
