Re:locate magazine | Recruitment | Mounting recruitment difficulties

The latest quarterly CIPD/KPMG Labour Market Outlook survey published in May finds that pay rises are set to remain modest, in spite of indications that more employers expect to award staff increases of at least 4%. The median expected increase remains steady at 3% (2.5% in the public sector). However, the threat of higher pay inflation is greater than for some time amid signs of mounting recruitment difficulties. “Substantial growth in the supply of labour in recent years, due mainly to increased immigration, has helped the economy avoid the wage spiral some had feared in the wake of the recent surge in the cost of living. But although this risk may subside in the coming months as the rate of price inflation moderates, a new threat is emerging in the shape of increased recruitment difficulties. This is particularly true of job vacancies requiring the kind of skill or experience which migrants aren’t always able to supply” said Dr John Philpott, Chief Economist at the CIPD.

The full survey is available at www.cipd.co.uk.

Back