Wage rises above inflation is unlikely in the next year due to limited skills shortages and subdued pay settlement forecasts from employers, according to the latest Labour Market Outlook from the Chartered Institute of Personnel and Development.
The quarterly survey of more than 1,000 employers shows that across all sectors just 15 per cent of current job vacancies are proving difficult to fill. It also reveals that, outside a limited number of industries, UK employers continue to be able to recruit the workers they need without significantly hiking wages and that median basic pay rises of just 2% are predicted by employers in the 12 months to September 2016.
The Labour Market Outlook finds that the number of applicants per vacancy has remained steady over the past year, with average applications for jobs running at 25 for each low-skilled role, 15 for medium-skilled roles and 8 for highly-skilled roles. The CIPD says this suggests that most businesses are seeing a steady flow of suitable candidates, despite falling unemployment and a slight year on year increase in the number of employers reporting hard-to-fill vacancies. Employers were dealing with the latter,by upskilling existing staff, hiring more apprentices, recruiting migrant workers and raising starting salaries for hard-to-fill positions.
Meanwhile, Morgan McKinley’s London Employment Monitor report shows an increase across the board in both new job opportunities and new job seekers in City firms in October. It says new jobs increased by 7% month-on-month to 9,480 and by 28% year-on-year. It says the results show a return to the positive trend seen in the first half of the year, after three months of decreases in new jobs and two months of declining job seeker numbers. The reduction in jobs in August and September were partly due to the summer holiday season, it states.
“The general feeling in the jobs market was a mixed bag in October,” says Hakan Enver, Operations Director, Morgan McKinley Financial Services. “We saw some departments showing urgency in their hiring whilst others were somewhat lethargic.”