Staff shortages drive an increase in UK starting salaries

÷ A Brexit-driven decline in the availability of staff and surging demand for workers is pushing up starting salaries in the UK, according to Markit and the Recruitment and Employment Confederation (REC).

The availability of permanent candidates declined at the fastest pace in four months in September, according to a report published on Friday. Net migration to the UK has fallen to a three-year low after an exodus of European workers following the decision to leave the European Union.

“The record-high UK employment rate plus a slowdown in the number of EU nationals coming to work here is exacerbating the situation, potentially leaving roles unfilled,” said REC ceo Kevin Green. “Recruiters are finding it even harder to find people to fill vacancies.”

Restaurants, warehouses and supermarkets are experiencing particular difficulties as they employ a higher proportion of people from the EU. The UK government should ensure any new immigration system includes low-skilled and temporary workers so workers can fill the jobs required, the REC said. The financial sector is also struggling to recruit for roles in audit, risk and payroll, according to the report.