CIPD & REC | HR reacts as vacancies and wage growth hit all-time high

Wage growth within the UK has hit record levels, as companies looked to fill more than 1million new job vacancies for the first time in recorded history. The scramble for talent, according to analysts, is closely linked to the ceasing of lockdown restrictions.

According to reports from the ONS, average earnings in the three months through June surged a record 8.8% from a year earlier, with the volume of UK job vacancies surging 50,000 to a record high in July.

Whilst the Bank of England told The Guardian that it expects the current strain on talent attraction to be temporary, policy makers warned this month that meeting the two per cent inflation target will require a flattening of financial stimulus.

However, Neil Carberry, Chief Executive Officer of the Recruitment & Employment Confederation, warned that although signs of recovery were positive, the record number of vacancies highlighted great labout shortages in several sectors.