Lack of skilled workers driving up salaries, report says

Almost a third of recruiters surveyed by industry body reported increased starting pay, but KPMG warns that talent shortage could slow economic growth

Skills shortages are driving increases in pay, with almost a third of recruitment agencies reporting improved starting salaries, according to a study.

Pay growth was especially strong in the Midlands and the south, said the report from KPMG and the Recruitment and Employment Confederation (Rec).