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As migrants return home...

Staff shortages forcing up pay rates

Workers

Output expected to grow

Employers are finding it harder to recruit staff, causing pay rates to rise for permanent and temporary staff, according to a survey of employment agencies.

Some EU nationals are also returning home because of last year’s Brexit vote, which is leaving unfilled jobs for chefs, drivers and warehouse workers.

Record numbers are now in jobs but the survey of recruitment agencies by market research firm Markit indicates a need to bring more people into the labour market.

Kevin Green, chief executive of Recruitment and Employment Confederation, said: “It’s clear that employers are having to work even harder to fill jobs as vacancies rise and candidate availability shrinks.

“The parts of the economy most reliant on European workers are under even more pressure as many EU workers return home.”

The survey, now in its 20th year, looked at the experience in July of 400 UK recruitment and employment agencies.

It found that there was “robust demand” for staff with the number of applicants placed in permanent jobs, and also in temporary or contract jobs, growing at their fastest rates for more than two years.

It said, the number of available candidates for both types of work fell markedly during the month.

The report’s suggestion that pay rates for permanent jobs are now rising as a result, and are at a 20-month high, will raise some eyebrows.

The REC said some of its members had noted that employers were offering higher pay rates to lure the right recruits.

 

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