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Starting salaries rise thanks to skills shortage


Almost a third of recruitment agencies have reported that starting salaries have improved since last month, thanks to skills shortages in certain industries.

According to a report from KPMG and the Recruitment and Employment Confederation (REC), the rate of pay growth has been getting stronger as the availability of skilled candidates continues to fall. Skills shortages are a particular problem in teaching, nursing and healthcare professions. This leads to more attractive salaries being offered to potential members of staff to make companies seem more competitive, pushing up the overall level of starting salaries.

Chief executive of REC, Kevin Green, said:
“Almost a third of recruiters say that starting salaries have increased in comparison to last month, and we’ve seen another increase in the number of people [who] have found a new job via a recruiter.

“This suggests that labour market fluidity is returning. Candidates are more confident about looking for work, and there are opportunities to earn more for those that do.

“Employers need to realise that people are deciding to change jobs because they can earn more than in their current job.

“As politicians debate skills, education and immigration in the run up to the election, we hope they recognise the potential impact of this skills crisis, because a lack of workers to meet demand threatens the sustainability of our economic growth.”

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