Shortage ‘putting pressure on companies’

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An expert has reacted to latest figures showing permanent staff availability in the North declined sharply in August, extending the current sequence of contraction to 19 months.

Richard Evans, senior partner at KPMG’s Preston office, said: “Yet again we’ve seen the screw being turned in the war for talent across the North. Demand for permanent staff has grown sharply, while the availability of workers who are putting themselves out in the marketplace has fallen for the 19th consecutive month. All of this is translating into further increases in salaries, which as we know, is great news for candidates but puts more pressure on companies who – having learnt the lessons of the past – would prefer to keep a tight control over spending.”

Temp supply in the North decreased for an eleventh consecutive month in August. The pace of reduction was marked overall, but weakened from the prior two months and less pronounced than the national average.

Likewise, temporary candidate availability fell sharply across the remaining three English regions in August. Temp supply in the South declined at the steepest pace since 1998, whereas rates of contraction elsewhere slowed from July.

The figures came from a survey of scores of recruitment and employment consultants across the country.