- Slower increases in permanent placements
- Candidate availability continues to drop rapidly as demand for staff rises further
- Starting salary inflation hits fresh series peak
Starting salary inflation hits fresh series record in October
Adjusted for seasonal factors, the Permanent Salaries Index signalled a sharp and accelerated rise in salaries awarded to new permanent joiners in the South of England in October. Furthermore, the rate of pay inflation reached a fresh series peak for the fourth straight month and was slightly quicker than the national average.
Increased competition for staff and efforts to entice applicants had driven the latest upturn in starting salaries.
While both permanent and temporary appointments across the South remained on the rise during October, the rate of increase has now slowed. This is in part due to ongoing staff
Shortages and the disparity between employer need and candidate availability, with starting salaries continuing to creep up as a result. Businesses in the region so eagerly looking to move on from the disruption caused by the pandemic will be hoping a balance between demand and supply is restored sooner rather than later.
This latest data shows the robust growth in the jobs market continuing. Starting salary growth has reached another record high as shortages continue to bite and companies compete to hire the staff they need. But we are starting to see signs that we are moving into a new phase of the recovery, as the initial bounce back in demand starts to ease.