Wages in IT continue to rise with more increases expected in new year

The monthly Recruitment and Employment Confederation (REC) and KPMG Report on Jobs shows job placements "eased" on the previous month, but that wages have continued to rise, including in the technology jobs market.

The report says the number of people placed in permanent and temporary/contract roles continued to rise in November, but that the numbers eased to five month lows.

However, vacancies actually rose at their strongest rate in over 15 years. As a result, permanent salaries increased at their fastest rate in six years, as the decline in suitable candidate availability gathered pace.

All four monitored English regions posted increases in permanent placements, with the Midlands continuing to register the fastest growth.

Growth of jobs demand was broad-based across all nine types of permanent staff monitored by the survey in November. The strongest rate of expansion was signalled for engineering workers, as was the case in October. Close behind was nursing/medical/care, and followed by IT and computing.

All nine categories of temporary/contract staff registered increased demand levels in November too. The fastest rate of growth was for blue collar workers, closely followed by engineering employees. IT and computing was the fourth-fastest rising temporary jobs sector.

The permanent job areas in IT and computing that were in short supply were business analysts, C#, C++, developers, general IT, Java, PHP, and software engineers.

In the temporary IT and computing sector there were shortages for developers, infrastructure specialists, .Net, SAP, and SQL.

REC CEO Kevin Green said: “We enter the New Year with job vacancies increasing at the fastest pace in 15 years. The fact that our figures show starting salary growth hitting a six year high, combined with continued skill and talent shortages, indicates that we can expect salaries to increase and job fluidity to accelerate into 2014."

Bernard Brown, partner and head of business services at KPMG, said: "Six months ago – after almost five years of pain – most employers were wondering just how real the signs of recovery were.

"But business certainly seems to be more confident because, as 2013 draws to a close, organisations across the UK are maintaining their recruitment drive to the point that the rate of growth in vacancies has reached a 15-year high."


Copyright © 2013 IDG Communications, Inc.

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