Starting Salaries Rise at The Fastest Rate Since 2015

Starting Salaries Rise at The Fastest Rate Since 2015

The latest REC (Recruitment Employment Confederation) monthly survey has shown that salaries for workers moving into new permanent roles in May increased at their fastest rate since 2015. This is a continuing trend from previous reports that have consistently shown an increase in the demand for skilled staff. Allied to this, there is a continued fall in the number of suitable candidates available, particularly in sectors such as engineering, manufacturing and IT.  Indeed, increases in engineering salaries were increasing above inflation wage rises.  Pay for people starting new temporary jobs also continued to rise. 

However, it is important to remember that final salary levels in the UK are also affected by the staff who are awarded pay rises to stay in their current jobs and this has always been an area that experiences slower rises than a new employee would expect when moving jobs. 

In wider economic news, this month has also seen that the latest figures from the Office of National Statistics (ONS) have concluded that manufacturing and construction output fell between February and April, with manufacturing experiencing at its fastest falling rate since 2012.  The National Institute for Economic and Social Research (NIESR) has also stated that growth between March and May 18 was just 0.2% which suggests that economic growth is still slow and has not yet “bounced back” as the Bank of England suggested that it would.

At Intro Personnel, we fully appreciate that all companies have budgets to work towards and that it is often not as simple as raising wages to attract a better calibre of employee.  Therefore, we would encourage clients to look at other ways of attracting people which could include offering flexible working hours and more opportunities to progress internally once a new employee proves themselves.  We would be happy to speak to any business that would like advice on this subject. 

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Intro Personnel are proud to be members of the REC.