9 Dec 2021
Worker Shortage Triggers Starting Salary Inflation in the U.K.
The Index Today
The Index Today — The starting pay rate in the U.K. has hit a record high in 24 years as British recruiters scramble to grapple with employee shortage concerns.
According to the Recruitment and Employment Confederation, permanent placement of workers increased in November which has led to a surge in salaries and temporary hiring practices. Claire Warnes of KPMG UK contended that improved skills training and transport facilities along with increased market flexibility are essential for the recovery of the labour market.
Governor Andrew Bailey and other Bank of England officials have expressed concerns over possible permanency in the starting pay surge, even as the bank plans on increasing interest rates to combat the rise in resulting expenditure.
However, the final decision to up borrowing interests rests on the overall economic impact of the Omicron variant which will be discussed during the central bank’s monthly meetings that are set to begin this week.