Salaries for permanent new joiners in the Midlands increased for the 17th month in a row in July, according to new research. Recruiters said they noted a lack of suitable candidates and pressure to increase wages to entice staff were behind the rise in permanent salaries.
The increase in permanent salaries in the Midlands was the slowest of the four English regions covered, according to the new UK Report on jobs, published by financial services firm KPMG and the Recruitment and Employment Confederation. Hourly pay rates for temporary staff rose markedly during July, it said.
The rate of inflation eased from that seen in June and was the second-softest recorded in the past 14 months. Recruitment consultancies indicated that candidate supply shortages had been a leading factor behind higher pay rates.
On a regional basis, the increase in the Midlands was the slowest of the four regions monitored by the report which also covered London, the South of England and the North of England.
Kate Holt, people consulting partner at KPMG UK, said: "The trend of uncertainty in the UK jobs market of the last few months continues, as overall hiring activity saw another slowdown in July. Given the challenging economic outlook, employers are rightly hesitant about their hiring plans.
"But, to compound this, a lack of suitable candidates and an overall skills shortage in most sectors are keeping starting salaries high. As the cost-of-living crisis continues to bite - alongside rising inflation - some workers may well choose to stay where they are rather than risk job security by moving now.
"However, it's important to note that it is still very much a candidate's market and so businesses should not only be offering competitive salaries but additional opportunities for development and upskilling to ensure that they are attracting the talent they need."
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