Pay tipped to rise as jobs pick up


Pension deficits

Pay is expected to increase next year as the jobs market continues to pick up, a report has said.

Vacancies increased last month at the fastest pace for 15 years, while more people are being placed in permanent and temporary jobs, according to recruitment firms.

The strongest demand was for engineers, followed by nursing, medical and care, said the Recruitment and Employment Confederation (REC) and KPMG.

Demand for staff was stronger in private firms than in the public sector, said the Report on Jobs, adding that fewer candidates were available for jobs last month.

Temporary and contract staff availability fell at the fastest pace in nine years.

REC chief executive Kevin Green said: " We enter the new year with job vacancies increasing at the fastest pace in 15 years. The fact that our figures show starting salary growth hitting a six-year high, combined with continued skill and talent shortages, indicates that we can expect salaries to increase and job fluidity to accelerate into 2014.

"Report on Jobs show that all sectors, all regions and both the private and public sector are in growth, which is fantastic news for British businesses, the UK economy and people looking for work in 2014."

Bernard Brown of KPMG added: " Business certainly seems to be more confident because, as 2013 draws to a close, organisations across the UK are maintaining their recruitment drive to the point that the rate of growth in vacancies has reached a 15-year high."

TUC general secretary Frances O'Grady said: "Having endured four years of shrinking wages, workers deserve better pay rises so they receive a fair share of the benefits of growth.

"Otherwise, the recovery will continue to pass most people by."