A majority of recruiters reported an increase in the number of people placed in permanent and temporary jobs, with the strongest growth seen in London, according to the monthly report by KPMG and the Recruitment & Employment Confederation.
Vacancies continued to grow, albeit more slowly, and applicants were scarce, leaving recruiters struggling to fill positions. The proportion of recruiters reporting an increase in starting salaries for permanent hires was the highest on record, the REC said.
“The pace of demand for workers is much faster than the supply can keep up, draining an already shrinking pool of available talent and fueling inflationary pressures,” said Claire Warnes, Education Manager, Skills and productivity at KPMG.
However, the most recent real-time data suggests some companies in the hospitality industry – so far the hardest hit by staff shortages – may put their hiring plans on hold as the Omicron spread disrupts the celebrations. before Christmas.
Figures released this week by Adzuna, the online job portal, showed ads for hospitality and catering positions fell 25% in one week, as restaurant bookings also fell.
Neil Carberry, CEO of REC, said it was too early to say how Omicron might affect the job market, but hiring could slow in December, with hospitality “at the forefront of any change.” while high inflation would squeeze people’s stock markets in January.