U.K. Starting Salaries Pick Up as Companies See Worker Shortage
(Bloomberg) -- U.K. starting salaries grew at the fastest pace more than three years in September as Britain’s impending exit from the European Union made it harder for employers to find enough qualified candidates.
Job vacancies for both permanent and temporary positions also rose during the month, according to a report by IHS Markit and the Recruitment and Employment Confederation on Friday. Hourly pay to temporary workers gained at a faster rate, while demand for nursing and medical care professional rose the most.
“U.K. businesses are resilient, but they’re struggling to find the people they need to drive growth and opportunity,” said Neil Carberry, chief executive officer at the REC. “Recruiters’ specialist skills help to address this, but with Brexit looming, a comprehensive mobility deal with the EU will be needed to underpin prosperity.”
The fall in the pound and the prospect of workers’ losing their rights to work in the U.K. are discouraging job seekers from the rest of the EU. The Bank of England expects wages to pick up further, one reason why policy makers say a series of interest-rate increases will be needed to keep inflation in check, and Amazon.com Inc. said on Tuesday it will raise the minimum wage for all employees in the U.K.
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