Business

Fresh report finds skills shortages continuing to drive wage growth in Northern Ireland

Irish recruitment group Brightwater says skills shortages is continuing to drive up wages in some sectors
Irish recruitment group Brightwater says skills shortages is continuing to drive up wages in some sectors Irish recruitment group Brightwater says skills shortages is continuing to drive up wages in some sectors

SKILLS shortages is continuing to drive wage growth in the north, a fresh report has found.

Irish recruitment group Brightwater concluded that the shortages resulted in a 10 per cent rise in pay for some roles.

The annual research is based on data from approximately 1,400 respondents, including employers and job seekers. It follows similar conclusions made in a report conducted last month by recruiter Hays.

The Brightwater survey also found a recruitment freeze in 70 per cent of supply chain and logistics businesses, which it linked to the uncertainty created by Brexit.

However the report also found that Brexit planning has driven new demand for niche roles, including customs specialists, which the food industry in particular, seeking out experts in Brexit.

Meanwhile, wage rise of 3-5 per cent are expected in accountancy, finance, IT and most jobs in the engineering sector.

But the HR, sales, marketing and business support sectors can expect flat or minimal increases.

Commenting on the report, Brightwater’s regional director in Northern Ireland, Cathal O’Donnell said: “The Northern Ireland labour market has continued to perform well in 2019 against the backdrop of relatively subdued economic growth driven in large part by Brexit uncertainty but also other considerations including the lack of a functioning Assembly in the region.

“Notwithstanding the uncertainties stemming from the ongoing Brexit situation, the NI jobs market remains dynamic, particularly within the manufacturing and transport sectors with a few notable companies undergoing closures, restructuring and redundancies.

“Ironically, despite overall contraction in jobs numbers, employers in manufacturing and some services, say they are experiencing a key skills shortage.”

Mr O’Donnell added: “As in 2019, 2020 will see a rise in salaries across some sectors such as accountancy, IT and some areas of engineering but in certain areas of IT and manufacturing where there is a considerable shortage of talent, we have seen some salary increases up to eight per cent. “However, counteroffers are prevalent especially in niche areas like cyber security, QS and audit and are skewing perceptions of market rate salaries.”

He concluded: “There remain some key labour market challenges such as lower labour market participation, higher reliance on public sector jobs, but the overall shape of the labour market in Northern Ireland at present is sound.”