Employers are facing the most severe shortage of job candidates on record.

This is based on a survey from the UK's Recruitment and Employment Confederation (REC):

  • pace of recruitment for permanent posts hit the highest in the survey's nearly 24-year history last month.

Reasons cited include:

  • the post-lockdown surge in the economy and Brexit
  • pushing up starting pay for permanent staff at an unprecedented pace
  • shortages of staff
  • reluctance by employees to switch roles due to the pandemic
  • fewer European Union workers
  • skill shortages

IF employers respond with wage rises the case for a BoE tightening solidifies further and sooner.