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Starting salaries increase at the quickest pace since 2015

The recently published IHS Markit/REC Report on Jobs shows an increase in permanent staff appointments along with entry-level salaries.

The report, drawing on original survey data provided by recruitment consultancies, shows a sharp rise in starting salaries amid a steep reduction in candidate supply.

Key Points of Report:

  • Starting salaries for permanent jobs increased at the quickest pace since April 2015 during September.  
  • Recruitment consultants reported difficulties regarding the availability of staff for both permanent and temporary roles.
  • Hourly rates of pay for temporary staff rose at a faster pace than in the preceding month.
  • A further rise in job vacancies for both permanent and temporary roles.

London sees quickest rise in permanent jobs

Of all four English regions that were monitored, London registered the fastest increase of permanent placements, while the slowest was seen in the Midlands. Additionally, all four areas noted increases in temp billings. The sharpest rise was seen in the Midlands, compared with the weakest expansion which was registered in the South of England.

The latest survey also highlighted that roles in the private sector continue to register a stronger rise than vacancies in the public sector. Overall, temporary staff in the private sector saw the fastest growth of demand, while the permanent public sector workers witnessed the slowest.

Neil Carberry, Chief Executive at the REC said:

“UK businesses are resilient, but they’re struggling to find the people they need to drive growth and opportunity. Recruiters’ specialist skills help to address this, but with Brexit looming a comprehensive mobility deal with the EU will be needed to underpin prosperity.”

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