Worker shortage troubles UK
Employers in Britain struggle with severe job applicant shortage due to Brexit and recent lockdowns’ blow on the economy. The situation resulted in an unprecedented increase rate in starting pay for permanent employees, according to the Recruitment and Employment Confederation (REC).
The REC said employers became more optimistic about the outlook in August. However, a labor shortage prevented their efforts to hire new staff. Among the factors that contribute to hiring constraint include workers’ unwillingness to change jobs due to the pandemic, lesser European Union workers, and skill shortages.
The rate of permanent job recruitment touched its highest level last month since the survey started 24 years ago. Meanwhile, temporary hiring and available positions were close to July’s record highs.
As a result, salaries for newly hired permanent employees increased at the fastest rate, while temporary workers’ wage inflation the second-fastest.