Employers 'rapidly increasing' starting salaries Published duration 6 October 2017

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Employers are "rapidly increasing" starting salaries to fill jobs as the availability of candidates falls, a report has found.

Permanent starting salaries rose in September at their fastest rate for 33 months, according to IHS Markit.

It found strong demand for staff coincided with a decrease in the availability of both permanent and temporary workers.

However, the jobs data suggested little change in overall wages.

The Recruitment and Employment Confederation (REC) said the best way for workers to secure a pay rise was to move jobs.

The report also highlighted a fall in the number of EU nationals travelling to Scotland for work, which had particularly affected food processing, warehouse and supermarket jobs.

REC chief executive Kevin Green said: "Recruiters are finding it even harder to find people to fill vacancies.

"Candidate availability has been falling for the past four years and 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.

"In Scotland, employers are rapidly increasing starting salaries to compete for candidates. There's little sign of this affecting overall wages, so the best way to secure a pay rise remains moving jobs.

"Low-skill roles are also hard to fill in areas like food processing, warehouses and catering - sectors that employ a higher proportion of people from the EU than others across the economy."