Contact Us

Starting salaries for UK employees grew at the fastest rate in March for six months; the strongest increase since last autumn.

That’s according to a new jobs market study by the Recruitment and Employment Confederation (REC) and professional services firm KPMG.

Continuing staff placements also coincided with wage increases for new starters, as the number of vacancies across the UK reached a five-month high in March.

The study suggests permanent staff are the biggest beneficiaries of the starting salary rise, with hourly rates for temporary and contract positions increasing at a slower pace in March than the previous month.

However, figures indicate a shortage of talent on the jobs market, as the supply of candidates to employers fell at the sharpest rate in four months; while the availability of temporary staff declined at the fastest rate since October 2014.

Kevin Green, chief executive, REC, said: “Almost a third of recruiters say that starting salaries have increased in comparison to last month, and we’ve seen another increase in the number of people that have found a new job via a recruiter.

“This suggests 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.

“Employers need to realise that people are deciding to change jobs because they can earn more than in their current job.

“Increase in starting salary offers are being driven by skills and talent shortages across the economy, and businesses are going to have to think hard about retaining scarce resource.

“As politicians debate skills, education and immigration in the run up to the election, we hope they recognise the potential impact of this skills crisis, because a lack of workers to meet demand threatens the sustainability of our economic growth.”

Date published 5 May 2015 | Last updated 1 May 2015

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

0800 0523 555

Or contact us