Skills Shortage Pushing Up Pay, Says Survey
Posted 5th March 2019 in News For Businesses For Workers
A growing shortage of skills in the United Kingdom’s job market is driving up wages, according to a new survey.
Research compiled by the Chartered Institute of Personnel and Development (CIPD) and recruitment group Adecco showed that pay expectations had increased to record levels since they first began tracking wage agreements in 2012.
Private-sector employers said they were expecting to award annual pay increases of 2.5% on average in 2019, a rise from 2% at the end of 2018.
Two thirds of private sector firms responded that they had increased their starting salaries.
The rise in pay comes as more companies report difficulties in recruitment, with just under three quarters of the 1,254 employers surveyed responding that they found it difficult to fill vacancies in the first quarter of 2019.
Jon Boys, labour market economist at the CIPD, commented, “The labour market is surprisingly robust. There are skills shortages and companies are struggling to get the talent they need – that’s what’s driving this increase in pay growth we’re seeing.”