Fastest rise in permanent salaries since 2007

Permanent salary growth in March 2014 rose at the fastest rate since July 2007, according to the Recruitment and Employment Confederation (REC).

The research by the recruitment body also found that pay for contract and temporary staff increased at the slowest rate in 5 months.

The REC report revealed that candidate shortages continue to be a problem for employers, with the availability of permanent candidates falling at the sharpest rate since October 2004.

The drop in contract and temporary staff availability was the fastest in almost 10 years.

Other key findings:

  • Demand for staff continued to rise in March
  • Staff demand in the private sector remained stronger than in the public sector
  • The engineering sector saw the highest demand for staff
  • Permanent and temporary staff appointments slowed slightly in March.

Tom Hadley, director of policy at the REC, said:

"The trend of growth in people finding jobs across all industrial sectors and regions continues. Starting salaries and hourly pay rates are up as employers battle to entice the talent they need. As real wages begin to rise across the jobs market people will start to feel better off.

"However worsening candidate shortages mean that the number of people available to fill both temporary and permanent jobs is falling at the sharpest rate in nearly a decade. We have a core group of long-term unemployed people whose skills don't fit with current vacancies and are unable to access the jobs market."