Recruitment growth remains strong – but opinion is divided.

Recruitment growth remains strong –  but opinion is divided.

Continuing wages growth for new starters is being driven by increasing candidate shortages across all skill sectors, says the REC. Employers are struggling with a continued fall in the number of candidates seeking new positions and some of this may be due to the upcoming General Election.

“Candidates seek certainty before leaving the safe haven of their current role” says Bernard Brown at KPMG, continuing “This pervasive skills shortage could put the brakes on economic growth.”

However, Kevin Green of the REC has a more optimistic forecast. He believes that increasing salaries indicate that “labour market fluidity is returning – candidates are more confident about looking for work, and there are opportunities to earn more for those that do.”

Clive Jefferys, MD of telecoms recruiter JMA Network is also upbeat.

He comments that “It’s all part of the natural cycle of employment. If we use the 1991 Recession as a guide, we are at about Year Three since the low point. That was when the labour market picked up massively!”