UK employers raise pay as Brexit skills shortage bites – recruiters

A fall in people coming to Britain from other European Union countries has aggravated a shortage of workers and forced employers to raise starting salaries at the fastest pace in nearly two years during August, a survey showed on Friday.

The monthly report from the Recruitment and Employment Confederation (REC) and accountancy firm KPMG showed companies struggled to fill their vacancies and turned increasingly to recruitment agencies.

Starting salaries for permanent staff rose in August at the fastest pace since October 2015, something likely to be noticed by the Bank of England officials which is watching for signs of pay growth as it considers when to start raising interest rates.

BoE officials have predicted wage growth will pick up in 2018 after falling in inflation-adjusted terms this year.

British households have seen their spending power squeezed by a rise in inflation caused in large part by the fall in the value of sterling since last year’s Brexit vote. Read more…

UK employers raise pay as Brexit skills shortage bites – recruiters