Employers raise starting salaries to attract falling number of job seekers

Employers are “rapidly increasing” starting salaries to fill jobs as the availability of candidates falls, a report has found.

Permanent starting salaries are rising at the fastest rate since December 2014 in order to support growth, according to the latest IHS Markit Report on Jobs data for Scotland.

The report said labour market conditions are continuing to improve as strong demand for staff coincides with a decrease in the availability of both permanent and temporary workers.

Businesses are increasing starting salaries to compete for candidates but there is little change in overall wages.

The Recruitment and Employment Confederation (REC) said the best way for workers to secure a pay rise is to move jobs.

A fall in the number of EU nationals travelling to Scotland for work was highlighted by the report, particularly affecting food processing, warehouse and supermarket jobs.

REC chief executive Kevin Green said: “Recruiters are finding it even harder to find people to fill vacancies.

“Candidate availability has been falling for the past four years and the record high UK employment rate plus a slowdown in the number of EU nationals coming to work here is exacerbating the situation, potentially leaving roles unfilled.

“In Scotland, employers are rapidly increasing starting salaries to compete for candidates. There's little sign of this affecting overall wages, so the best way to secure a pay rise remains moving jobs.

“Low-skill roles are also hard to fill in areas like food processing, warehouses and catering - sectors that employ a higher proportion of people from the EU than others across the economy.

“We urge the government to ensure any new immigration system includes provisions for low-skilled and temporary workers so that warehouses, supermarkets and restaurants can bring on the people they desperately need.