Business

Skills shortage leads to pay increase - report

SKILLS shortages are driving increases in pay, with almost a third of recruitment agencies reporting higher starting salaries, according to a new study by the Recruitment and Employment Confederation (Rec) and KPMG report.

The rate of pay growth was the strongest since last September, while the availability of candidates continued to fall.

Skills shortages were a particular problem in teaching, while for temporary staff the problem was worse in nursing and healthcare, it was reported.

Kevin Green, Rec's chief executive, said: "Almost a third of recruiters say that starting salaries have increased in comparison to last month, and we've seen another increase in the number of people that have found a new job via a recruiter. "This suggests that labour market fluidity is returning. Candidates are more confident about looking for work, and there are opportunities to earn more for those that do. Employers need to realise that people are deciding to change jobs because they can earn more than in their current job."