As reported in The Times Scottish edition today, most of us ought to be a bit happier because loads of us have got jobs and, despite the general sense of gloom that pervades much of our daily newsapers’ reporting of the macro-economy, we should be especially pleased because wages are rising faster than for many years. As the September Markit report makes clear, “Permanent starting salaries increased at the fastest rate in 33 months in September. This contrasted with the aggregate UK data, which signalled a marginally slower rate of starting salary inflation than in August. Meanwhile, average hourly pay rates for contract staff in Scotland rose sharply again.”
Although the rate of growth in demand for permanent staff eased in September, and in our area there has been a lot of headlines suggesting that construction might struggle with the completion of many of the major public-sector infrastructure projects, it really must be stressed that the Markit figures, for both perm and contractor roles, continue to show substantial growth in demand from employers, and for temp/contractor roles in general the rate of rise was “sharp and above that seen for the UK as a whole.”
That’s all the good news. The less good news, from our point of view in particular, is that although demand for jobs is high, good candidates are in increasingly short supply. To give you an idea of the long-term impact of this, the Markit survey (which is based on returns by recruitment companies like Peace), says “the rate of deterioration (for perm staff) was in line with August, with approximately 43% of panellists reporting lower availability. The latest fall extended the current sequence of decline to 67 months (my italics)." What this means, of course, is that for great candidates the opportunities are excellent with employer demand and skills shortages helping to drive up their worth. So if you’re one of these great candidates, why not get in touch with us today?
Chris Peace, MD, Peace Recruitment