Posted On Sep 15, 2022
Despite the cost-of-living crisis, salaries in the UK have dropped since Covid-19, according to the latest data from the Association of Professional Staffing Companies (APSCo) and Bullhorn.
The data showed that despite the increased demand for staff since Covid-19 hit the country, average permanent salaries dropped 8% between August 2020 and August 2022. During this same period, the number of permanent jobs added increased 48%, while contract roles rose 71%.
With statistics from the Office for National Statistics (ONS) in August 2020 showed a growth in GDP for the second consecutive month, this latest data from APSCo indicates that salary increases have failed to keep pace with changes across the economy.
A similar picture is clear in pre-Covid comparisons, with wages dropping 7% between August 2019 and August 2022. This suggests that salary inflation across the professional recruitment sector has declined despite demand for talent increasing.
Ann Swain, CEO of APSCo, said, “Increasing salaries while our economic stability is being questioned is understandably unlikely to be a priority or even feasible for many businesses, but to see a decline in pre- and post- Covid salaries is worrying.”
“Since 2019 we’ve witnessed a demand for talent on a significant scale and an initial surge in economic activity as restrictions were lifted, but salaries across the professional, highly skilled sectors haven’t risen in line with this,” Swain added. “The result is now being felt across the country. With the impact of Brexit also still playing out, this decline in financial incentives for new hires will only have a detrimental impact on the country’s ability to attract the skills needed to bolster the UK’s economy.”
Earlier this week, ONS data showed that in real terms (adjusted for inflation), over the year, total pay fell by 2.6% and regular pay fell by 2.8% in the three months to July 2022.
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