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The average number of job applicants per vacancy has dropped in the past year, according to the latest Labour Market Outlook from the Chartered Institute of Personnel and Development.
The CIPD report concludes that demand for labour remains robust but that labour supply is failing to keep pace. It notes that the abrupt fall in the flow of EU nationals into the UK has coincided with a drop in the quantity and suitability of job applicants being reported by employers.
The survey of 2,001 employers, has found that two in five employers (40%) report that it has become more difficult to fill vacancies over the past 12 months, owing to a combination of fewer applicants and less suitable applicants.
Other key findings include:
The tightening labour market is boosting earnings of some key staff and new starters, although pay rises are set to stick at 2% for most workers. Half of organisations (53%) that have experienced increased difficulty recruiting staff during the past 12 months have increased starting salaries in response.
Alex Fleming, country head and president of staffing and solutions, The Adecco Group UK and Ireland, said, "With Brexit looming we\'re seeing a talent shortage and a more competitive marketplace.
“In this candidate-short landscape, the pressure is on employers to not only offer an attractive salary, but also additional benefits.
“Retention also remains key. It is imperative that employers develop and promote their staff so they don\'t fall short and feel the impact of the dwindling growth of the UK\'s talent pool."