Last reviewed 13 October 2021

According to the latest KPMG and REC (Recruitment and Employment Confederation) UK Report on Jobs, permanent starters’ salaries and temp wages both rose at the sharpest rates in 24 years of data collection.

Permanent staff appointments expanded at a pace that was only slightly slower than August's all-time record.

The upturn in recruitment coincided with further steep increases in demand for both permanent and temporary staff, the report highlighted.

Overall vacancies increased at one of the quickest rates on record, with growth of permanent staff demand remaining quicker than that seen for temp workers.

REC Chief Executive Neil Carberry said: “Competition for staff has led to the fastest growth in starting salaries since this survey began — not just in logistics and food processing, but in white collar professions as well”.

The Government must encourage business investment, an international outlook and skills development, especially at Levels 1 and 2 where shortages are most acute, he went on.

While the current crises will pass, Mr Carberry argued, rising input costs and further tax rises would only mean higher prices and lower investment in the medium term.

“It is essential that the Government works in partnership with business to deliver sustainable growth and rising wages, rather than a crisis-driven sugar rush,” he said.

Comment by Kate Palmer, HR Advice and Consultancy Director at Peninsula

Salary is just one element of an overall benefits package review that employers are currently being driven to undertake.

A labour shortage means employers need to make themselves look more attractive to those looking for a job; flexible working options and good pension contributions are other high priority benefits that could make the difference for a job applicant when deciding who to work for.