Starting salaries on the rise at their fastest rate in 24 years

Starting salaries are rising at their fastest rate in 24 years, thanks to an unprecedented rise in demand for staff. The hike has been linked to employers looking to hire more people as the economy recovers from the impact of Covid and the easing of restrictions.

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Starting salaries are rising at their fastest rate in 24 years (Image: PA Images)

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While employers are looking to hire again as the economy recovers and Covid restrictions are eased, the pool of available workers is limited due to pandemic-related fears about job security and a lack of European workers following Brexit.

As a result, competition for staff has increased and with it, starting salaries, according to a vacancy index from KPMG and the Recruitment and Employment Confederation.

It tracks changes in demand, which hit a record 75.2 for permanent roles in July, up from 74.4 the previous month.The index also shows the score for temporary jobs rose 0.7 points to 72.8. A score above 50 indicates growth.

KPMG and the REC said that just under half of all recruitment agencies reported an increase in starting salaries, with just one percent noticing a decline.

London Underground Station

There was an 11 percent increase in transport, warehouse and logistics vacancies at the end of July (Image: PA Images)

The permanent salaries index had a score of 73.2 for July, versus 66 for June. The temporary wages index recorded a score of 66.7 last month, versus 61.6 in June. KPMG partner Claire Warnes said that the pingdemic added “an extra dimension” to recruitment.

She said: “With salaries for new hires increasing at their quickest rate in 24 years and a sharp rise in permanent placements in July, job seekers should be taking advantage of the buoyant market to land their dream role.

“While companies want to invest in their business now restrictions are lifting, demand for new staff still outstrips supply due to low candidate availability.We know reskilling and upskilling is needed to help people move between sectors, and there’s no doubt the pingdemic has added an extra dimension to the recruitment challenge.”

According to the Office for National Statistics, reduced pingdemic alerts to people in contact with Covid victims saw an 11 percent increase in transport, warehouse and logistics vacancies in the last week of July.

It said that based on data from jobs site Adzuna, the number of vacancies advertised online in those sectors is 338 percent higher than it was prior to Covid-19.

Roy Walsh

Roy Walsh

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