Salaries in London have increased for the first time in three months, according to the latest Recruitment and Employment Confederation (REC) report. The report was produced by Markit and sponsored by KPMG LLP.
The report also showed that the rate of pay inflation was the fastest since July 2012 and the amount of permanent jobs in London increased throughout March, in line with the UK average.
Chairman of London Region at KPMG Iain Moffatt said: “As businesses try to manage their cost agendas, they are being forced into the…position of having to raise the starting salaries that are on offer, just to attract the best candidates from a shrinking pool of talent.”
According to cipd.co.uk, there was an increased demand for temporary positions in London, as well as the Midlands, implying the capital is going from strength to strength.
Jobs in the nursing and medical sectors were in the highest demand for temporary and contract staff, for the fourteenth month in a row.
The IT sector showed the largest increase in vacancies, pointing to the theory that there is a skill shortage in the industry.
The chief executive of REC, Kevin Green said there was a lack of candidates for high-skilled roles while the country had persistent levels of unemployment. He pointed out that this was creating ‘a two speed labour market’.