Tag: IT

Starting salaries show a record rise

According to the latest KPMG and REC, UK Report on Jobs survey, candidate shortages have slowed down hiring in both permanent and temporary recruitment. Even though expansions are high based on previous records, the increase rates hit 11- and 12-month lows, respectively.

The report, compiled by S&P Global, is based on responses to questionnaires from around 400 UK recruitment and employee consultancies.

The survey found that overall staff supply had the steepest drop in four months. Those surveyed attributed the candidate shortages to the low unemployment rate and uncertainty related to the pandemic and the war in Ukraine. Other reasons included fewer EU workers and robust demand for staff.

The candidate shortage has led to significant increases in starting salaries – the salaries for new permanent employees rose at the quickest rate in 24 and a half years. In addition, the average wages for temporary workers also increased at the fastest pace in three months.

Although all UK regions showed increases, there were variations in the various English regions. The Midlands showed the steepest increase in permanent placements, while the lowest increase was in the South of England.

Further variations were noted between the private and public sectors, with the largest expansion in demand being in the private sector.

The IT and computing industry continues to show the steepest increase in demand. Conversely, the softest increase was in the retail sector.

Neil Carberry, Chief Executive of the REC, commented: “We can clearly see that labour and skills shortages are driving inflation in these latest figures. Starting salaries for permanent staff are growing at a new record pace, partially due to demand for staff accelerating and partially as firms increase pay for all staff in the face of rising prices. Record COVID infection levels are also pushing up demand for temporary workers, particularly in blue collar and hospitality sectors, underpinning the ability of temps to seek higher rates.

“However, the overall number of placements being made is starting to stabilise. This is no surprise after a period of historically high growth, and in the face of more economic uncertainty. Even so, the jobs market is very tight. Businesses will need to broaden their searches and be creative in making their offer to candidates more attractive, in consultation with recruitment experts. But government can help by incentivising investment in skills and people during the inflation crisis.”

Claire Warnes, Head of Education, Skills and Productivity at KPMG UK, said: “There’s no end in sight to the deep-seated workforce challenges facing the UK economy. Once again this month, job vacancies are increasing while there are simply not enough candidates in all sectors to fill them. With fewer EU workers, the ongoing effects of the pandemic, the economic impacts of the war in Ukraine and cost of living pressures, many employers will continue to struggle to hire the talent and access the skills they need. With unemployment staying low, there are many great opportunities for job-seekers to join or rejoin the workforce in all sectors.”

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Impact of the Ukraine crisis is not reflected in employer hiring 

According to the ManpowerGroup Employment Outlook Survey, strong hiring optimism has continued into the second quarter of 2022. The survey of 41,000 employers showed that employers in 36 of 40 countries reported stronger hiring intentions than this time last year with the greatest demand in IT, finance, and manufacturing. The demand for skilled workers has remained at a record high as employers continue to look to attract and retain the best, diverse talent while embracing the post-pandemic era. 

The ManpowerGroup Employment Outlook Survey is the most comprehensive, forward-looking employment survey of its kind, used globally as a key economic indicator. The Net Employment Outlook is derived by taking the percentage of employers anticipating an increase in hiring activity and subtracting from this the percentage of employers expecting a decrease in hiring activity. 

Jonas Prising, CEO and Chairman of ManpowerGroup commented: “Labour markets around the world are looking strong for Q2, with hiring outlooks back at pre-pandemic levels in most countries. Any impact of the Ukraine crisis is not reflected in employer hiring intentions. While Poland and neighbouring countries are dealing with the humanitarian crisis, we must be poised to help resettlement and employment efforts for refugees, adapting roles and requirements to fill vacancies and create new opportunities.” 

Jonas continued: “At ManpowerGroup we are working fast to leverage our experience integrating refugees into labour markets from other countries – for example from Syria to Germany, Afghanistan to U.S. – and to adapt and scale reskilling and upskilling programmes specifically targeted to this population. Now is the time for collaboration between employers and governments to make it as fast and simple as possible to integrate refugees into the workforce so they can earn a living, contribute to society, and most importantly feel welcomed in their new surroundings.” 

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Apprenticeship applications up by 37% 

According to data from CV-Library, the UK independent job board, apprenticeship roles have increased by 28% when compared to 2021 figures and are up 203% when compared to 2020 figures. These figures have been revealed in the wake of the 15th annual National Apprenticeship Week (NAW) where the theme for the week was ‘build the future’.  

NAW brings together businesses and apprentices across the country to shine a light on the positive impact that apprenticeships make to individuals, businesses and the wider economy.  

During NAW, focus was given to how apprenticeships can help individuals to develop their kids and knowledge required to have a rewarding career and how businesses can develop a talented workforce that is equipped with future-ready skills.  

Encouragingly, according to the data from CV-Library’s survey, candidates have made 74,574 searches for apprenticeship roles in February so far, and in 2022 to date, applications to these roles have shot up by +37% on the same year period last year.   

The data revealed that the industries proving most popular during National Apprenticeship Week were:   

Top industries for apprenticeship job searches (Feb 2022 to date)  

  1. Accounting/Financial/Insurance  
  1. Administration  
  1. Education  
  1. Sales  
  1. Retail/Purchasing  
  1. IT  
  1. Engineering  
  1. Medical/Pharmaceutical/Scientific  
  1. Construction  
  1. Automotive/Aerospace   

When it came to taking steps to apply, young people who wanted to begin an apprenticeship chose the following sectors:   

Top apprenticeship applications by industry (Feb 2022)  

  1. Administration  
  1. Engineering  
  1. Construction  
  1. Manufacturing/Surveying  
  1. Distribution   

Finally, the research also showed that apprentice salaries varied depending on the industry. CV-Library’s survey revealed that the top five highest paying industries for apprenticeships are:  

Top apprenticeship salaries (Feb 2022)  

  1. IT – average salary of £25,401  
  1. Education – average salary of £22,117  
  1. Manufacturing/Surveying – average salary of £19,006  
  1. Medical/Pharmaceutical/Scientific – average salary of £18,800  
  1. Sales – average salary of £18,237  

Lee Biggins, CEO and founder of CV-Library commented: “This data provides clear evidence of the increasing popularity of apprenticeships. The breadth and diversity of roles on offer is attracting more candidates and the skills shortage in the UK job market is enticing employers to invest more heavily in these schemes. If businesses don’t want to get left behind, they need to embrace apprenticeships. Training future generations of professionals should be high on the agenda for employers.”   

Ken Brotherston, CEO of TALiNT Partners also commented:It’s great to see this trend which is a reflection of the move from many employers to take a long-term approach to addressing skills shortages. The wide range of different roles and sectors that modern apprenticeships can offer is also great to see (although traditional roles as a plumber or electrician are still in high demand and paying more than ever, too). Let’s hope this is a trend that continues to grow.”  

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