Pingdemic plagues UK jobs market as wages rise at fastest pace in over two decades

The UK jobs market continues to be plagued by severe worker shortages caused by the “pingdemic” and intense job insecurity, but wages are rises at fastest pace in over two decades, according to new figures published today.

KPMG and the Recruitment and Employment Confederation research shows candidate volumes for unfilled jobs fell at the second fastest on record rate in July since the organisations started tracking the figures.

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Concerns over being pinged by the NHS Covid-19 app or being contacted by a track and trace official have fuelled worker reticence to secure or return to jobs.

Weaker job security due to the financial damage the Covid crisis has inflicted on large swathes of the economy has also prompted workers to reassess their career goals. Some may be reluctant to leave furlough due to fears their roles could disappear should their employer go out of business.

Kate Shoesmith, deputy chief executive of the REC, said: “Employers are desperate to find good candidates for the many jobs on offer.”

High demand for workers that are in short supply is putting upward pressure on wages as employers strengthen incentives in a bid to attract talent.

“The rate of salary inflation was the sharpest seen in nearly 24 years of data collection,” the survey said.

Claire Warnes, partner and head of education, skills and productivity at KPMG UK, said: “Companies want to invest in their business now restrictions are lifting, [but] demand for new staff still outstrips supply due to low candidate availability.”

Scarcity of workers and the looser labour market means more power is accruing to employees.

Warnes urged workers to pursue roles now to capitalise on historically high starting salaries.

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