REPEAT: UK Staff Availability Shrinks, Pay Up: Markit-REC

Repeats Story Initially Transmitted at 01:01 GMT Jan 9/20:01 EST Jan 8

UK Dec Permanent Placements 56.1 Vs 55.9 Nov: IHS-Markit

By David Robinson

     LONDON (MNI) - Staff shortages are intensifying across the UK, with pay

growth accelerating for those moving jobs, a survey of recruitment consultants

published Tuesday found.

     The IHS-Markit December Report on Jobs showed a marked pick-up in pay

growth for temporary/contract work, little change in permanent pay growth and

shrinking staff availability. The permanent salaries index nudged up in December

to 60.7 from 60.6 in November while permanent staff availability shrunk to 34.8

from 36.4.

     Temporary staff pay rose to 57.1 from 56.1 while temporary staff

availability came in a 42.3, up from 38.7.

     With a 50 reading indicating neutrality, these data point to increasing

staff shortages and fairly brisk pay growth for those taking up new work. The

survey, reflecting the experience of agents placing workers, provides no data on

pay growth for those continuing in their current jobs, and pay deals for

existing staff in the UK have long been weak.

     "Employers, as a response to ... candidate shortages, are offering

increased starting salaries to attract staff but while this has been the case

for some time it isn't translating into significant wage growth across the

economy yet," Kevin Green, REC Chief Executive, said. 

     Job vacancy growth remained strong in December, with the vacancies index

coming in at 61.9, down from 62.9 in November but again well above the breakeven

level. Permanent staff vacancies dipped  to 61.9 from 62.9 with temporary staff

vacancies falling to 60.9 from 62.0.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com