The long squeeze on workers’ wages is coming to an end, as recruiters today report that employers are competing harder for talent.
As unemployment dives and the economy recovers, more employers are chasing fewer jobseekers, pushing up salaries.
However, the intensity of the pressure will ease – the pace at which hiring is growing slowed to an 18-month low, according to KPMG and the Recruitment and Employment Confederation.
Pay growth has picked up rapidly this year. The KPMG index for salaries paid to permanent staff now stands at 62.5 – up from 61.9 in October and far above to 50 mark that indicates no change in pay.
For temporary workers, the rate of growth is lower, but still substantial. The index for shorter-term contracts stands at 57.7 in November, up from 57.3 a month earlier.
At the same time, the availability of all staff is continuing to worsen.
The index for permanent staff fell a touch to 33.6 in November. Availability has been dropping since early 2013.
Employers reported shortages in key finance functions, including audit, compliance, credit control and payroll staff.
“If there’s a cloud on the horizon for 2015, it’s the intensifying skills shortages which now spans many sectors and is particularly acute in high-skilled areas like engineering, IT and medicine,” said REC’s Kevin Green, warning this lack of staff could slow the economic recovery.