Earnings growth will be good for recruitment sector, says Select Appointments
The Bank of England has also revealed it expects wage growth of at least 2% in 2015.
Whilst pay has mainly lagged behind inflation since the financial crisis of 2008, the Office for National Statistics (ONS) has revealed that wages, excluding bonus payments, rose 1.3% on an annual basis in September. The Consumer Prices Index measure of inflation for the same month was 1.2%.
The ONS also said employment increased by 112,000 in the last quarter to 30.7 million, the highest since records began in 1971.
“Wages are now growing faster than the rate of inflation for the first time since 2009, which is good news for everyone,” said Graeme McKinnon, managing director of Select Appointments.
“Due to the significant growth in the jobs market since the middle of 2013, record numbers are now in work. Businesses across all sectors are looking to hire and there is a definite shortage of skilled candidates all of which contributes to wages going up. This all bodes well for the recruitment sector and those who are looking to start a recruitment business.”