LONDON (Businesshala) – British employers made the most wage increases for new employees since at least the 1990s, according to a survey that will be studied by the Bank of England as it tries to assess whether How persistent can the recent surge in inflation be?
The Recruitment and Employment Confederation said firms were still seeking hiring in September, but staff availability fell sharply again, raising wages for permanent and temporary workers in the survey’s 24-year history .
REC chief executive Neil Carberry said competition for staff was widespread, from food processing and logistics – including an acute shortage of truckers – which led to the UK’s recent fuel supply crisis – to office-based jobs.
“We’ve all seen how labor shortages have affected our daily lives in the past few weeks, whether it’s an empty petrol station or fewer items on supermarket shelves,” he said.
Carberry urged the government to do more to encourage business investment, ease post-Brexit immigration rules, avoid barriers to international trade, and improve skills training.
The BoE has said there is a growing case for its first interest rate hike since the coronavirus pandemic last year expected inflation to top 4%. It is watching wage growth measures carefully as it anticipates that the increase in inflation proves to be temporary as it has predicted.