Salaries rising as bosses struggle to find new staff

The UK’s hiring boom is set to continue into the next quarter with nearly three in four employers planning to take on more staff, but it will soon reach its peak, the Chartered Institute of Personnel and Development is predicting.

The labour market remains “incredibly tight”, the institute’s latest quarterly Labour Market Outlook says. Many employers are raising wages and offering applicants more flexible options.

Pay expectations have hit a record high in the private sector at 4 per cent, while the median across all sectors has remained at 3 per cent.

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The institute’s survey of 2,000 senior HR staff in late June and early July found 72 per cent expected to recruit in the next three months, while 13 per cent expected to make redundancies.

Jonathan Boys, labour market economist for the institute, said: “We’re seeing some of the highest pay awards in recent history as employers strive to attract and retain staff. However, strong pay growth can’t last forever.

“To deal with the cost of living crisis, employers will have to look at other ways to support their people. Employer benefits that help reduce the cost of housing, travel and childcare will be of particular value.”

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Salaries rising as bosses struggle to find new staff