Newly qualified lawyers being offered £150,000 a year as shortage of skilled workers leaves firms competing for staff
Starting salaries shot up in September as a shortage of skilled workers left firms competing for staff.
Pay rose at the sharpest rate in 24 years according to accountancy giant KPMG while one recruiting chief said he had seen some salaries double.
Some newly qualified lawyers are even being offered £150,000 a year as companies try to fill more roles than there are workers.
Starting salaries: Pay rose at the sharpest rate in 24 years according to accountancy giant KPMG while one recruiting chief said he had seen some salaries double
High employment, fewer EU workers and employees nervous to switch roles because of the pandemic added to the shortage.
Specialist recruitment firm Robert Walters places lawyers, accountants, IT staff and other skilled professionals. It said the shortage of workers is not just in the UK.
Chief executive Robert Walters said he has seen wage inflation of at least 20 per cent and in some cases as high as 100 per cent.
He said: ‘It’s not a UK problem at all, it’s across the board. We’re seeing this aggravated by government initiatives such as lockdowns, but there’s shortages in any country you care to name.
‘All the skills needed to do everything are more in demand, and in certain areas, even in traditional areas such as law and accounting, we’re seeing the US law firms paying newly qualified lawyers £150,000 a year or more, it’s unheard of.’
KPMG’s head of education, skills and productivity said unprecedented salaries were good for workers but would not be enough to sustain economic recovery.
Claire Warnes said: ‘The sharp rise in hiring activity is a reason to be hopeful, but competition is fierce.’