Starting salaries for permanent employees have risen at their fastest rate in almost a decade.

According to a recent report by the Recruitment and Employment Confederation (REC) and KPMG, the number of job openings advertised continues to grow, with the pace of hiring only  narrowly missing the 15-year high seen in January 2014.

Though the number of job vacancies has increased, the number of candidates applying for these roles has decreased. This has contributed to the skills shortage the UK is presently facing and means that recruiters have their work cut out.

Demand for staff remains stronger in the private sector than in the public sector, with the most rapid growth evident in permanent roles; the strongest growth was recorded in the engineering sector. Temporary openings in the private sector are also on the rise.  

“The trend of growth in people finding jobs across all industrial sectors and regions continues. Starting salaries and hourly pay rates are up as employers battle to entice the talent they need. As real wages begin to rise across the jobs market, people will start to feel better off,” explains Tom Hadley, director of policy at REC.

These statistics, especially the increase in starting salaries, indicate that employers are starting to encourage job candidates to consider permanent placements rather than temporary jobs.