Staff vacancies in the UK continued to rise at a historically marked pace in August, leading to starting salaries growing at its second-fastest rate in over three years, according to the latest Report on Jobs from the Recruitment and Employment Confederation.

Recruitment consultancies signalled a further increase in permanent starters’ salaries during August. Notably, the rate of pay inflation quickened to the second-fastest since June 2015 (behind May 2018). Meanwhile, hourly pay rates awarded to contract/temporary staff also rose further in August. Although the rate of increase softened to a five-month low, it remained sharp overall.

Neil Carberry, Chief Executive at the REC, commented, “Businesses are getting on with it driving Britain’s growth, jobs are being created and starting salaries are rising. There are big opportunities out there for candidates right now looking for a new role.”

 “But how long our labour market can defy gravity if the shape of our future trading arrangements with the EU remain unclear is the big question. Companies are starting to implement contingency plans now and those who aren’t will need to step up progress,” Carberry said.

“The biggest long-term question on jobs is how they will be affected by new technology and stiff price competition driven by value-conscious consumers. For recruiters, helping people find pathways from sectors like retail into growing sectors will both boost opportunity and address candidate shortages in key sectors,” Carberry said.

Meanwhile, the REC’s data on job vacancies for August found that demand for staff rose across both the public and private sectors during August, with the latter noting the fastest increases in job vacancies.

Of the ten broad job categories monitored by the REC’s report, IT & Computing once again led the rankings for permanent job vacancies in August. Marked increases in demand were also seen across all other sectors with the exception of retail, where vacancies stagnated.

Demand for temporary/contract staff rose across nine of the ten broad job categories during August, led by Blue Collar and Hotel & Catering. Retail was the only sector to register lower temp staff demand.

REC’s report also found that permanent staff placements rose at the steepest rate for five months in August amid reports of robust demand for staff. Meanwhile, agencies’ billings received from the employment of temporary/contract staff increased further in August. The rate of temp billings growth was sharp overall, however it was the weakest seen for 22 months.