The UK saw a further rise in hiring activity during August as business confidence continued to grow, however, the number of workers available to fill roles fell at another record rate.
The recent KPMG and REC Report on Jobs revealed that the drop in candidate supply has resulted in sharper increases in starting pay – salaries for newly-placed permanent staff increased at the fastest rate seen in nearly 24 years, while temp wage inflation was the second-quickest on record.
Neil Carberry, Chief Executive of the REC, commented, “In August, the number of staff available to start jobs fell at another new record rate, deepening the current labour shortage. Recruiters are working around the clock, placing more people into work than ever as these figures show. Switching the entire economy on over the summer has created a unique demand spike, and a short-term crisis.
“But it would be a mistake for businesses to think of this as only a short-term issue. A number of factors mean that the UK labour market will remain tight for several years to come. Business leaders should be looking now at how they will build their future workforces, in partnership with recruiters, including the skills and career path development.”