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Wage rises hit record high due to South West's shortage of workers

KPMG and REC report reveal expanding companies and Covid uncertainty among factors causing recruitment issues

There is a shortage of workers in the South West, which is pushing up starting salaries

A shortage of staff is causing an unprecedented rise in full-time starting salaries and even pay for temporary workers across the South West, a new report says.

The latest KPMG and REC, º£½ÇÊÓÆµ Report on Jobs: South of England, which covers the region, reveals that ongoing worker shortages contributed to an unprecedented rise in starting wages and the joint-quickest increase in temp pay in more than 24 years of data collection, during December 2021.

The staffing shortage is being blamed on a range of factors including low employment, uncertainty caused by the Covid pandemic, expansion by companies and a Brexit-related reduction in foreign workers.


Previous KPMG and REC, º£½ÇÊÓÆµ Report on Jobs stories...

Ian Brokenshire, senior partner for KPMG in the South West, said: “The latest findings bring tangible reasons for optimism, with both permanent and temporary appointments significantly up and the availability of candidates across the South at its most stable for nine months.

“While the impact of staff shortages is still ongoing, as showcased by starting salary inflation hitting a new record high, the region’s businesses will be hoping December’s more positive trends are a sign of things to come.

“Although recent events have taught us to proceed with caution, employers will be drawing up their plans for recruitment with more confidence than at this time last year.”

Recruitment consultancies signalled a 10th successive monthly increase in the number of people placed into permanent jobs in December. The rate of expansion was the sharpest seen for three months.

Where higher permanent staff appointments were recorded, it was often linked to robust demand for staff and increased activity at companies.