The strength of the UK recovery is attracting talent from struggling economies, helping to fill shortages.
Adrian Gunn, chief executive of recruiters Matchtech, told City A.M. that the UK had a major skills shortage.
“Due to the skills shortage, candidates tend to have multiple job offers, but also are receiving quite a lucrative counter offer from their current employer to stay put,” Gunn said. Salaries among the highly skilled are rising quickly as a result, but recruiters are not necessarily benefiting as much as they might have expected.
“Multiple offers are elongating the process and putting a handbrake on permanent fee growth,”said Gunn.
Skilled labour is now coming from abroad to fill the shortage.
“We do a lot of recruitment in electronic engineering in automotives. We found 78 per cent of the candidates we interviewed from that sector were from abroad – notably Italy and Spain,”
They are not coming in fast enough though, Gunn sees salaries of high-skilled workers rising five per cent over the next year. It will not feed through to wage inflation, however, as there is still slack in low-skilled sectors.