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Starting salaries higher due to skills shortage

schedule 1st May 2015 by Virtual College in Virtual College Last updated on 7th July 2016

The rate of average starting salaries in the UK has reached its highest level for six months, due to being driven by skills and talent shortages, according to a survey.

The latest Job Report, released by the Recruitment and Employment Confederation (REC) and KPMG, revealed that starting salaries were especially higher in the Midlands and the south, with 35 per cent and 37 per cent of recruiters respectively reporting pay growth.

What's more, the availability of skilled candidates has continued to drop, with a particular shortage of skills in the teaching and nursing professions.

Kevin Green, chief executive of the REC, 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.

"Increases in starting salary offers are being driven by skills and talent shortages across the economy, and businesses are going to have to think hard about retaining scarce resource."

Mr Green highlighted the importance of employers recognising the benefits of skilled workers, adding that the current skills crisis threatens the sustainability of economic growth.

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