On Friday, a survey revealed that a decrease in people coming to Britain from other European Union countries have worsened a shortage of workers and required employers to increase starting salaries at the fastest speed in nearly two years during August.
The monthly report from the KPMG, an accountancy firm, and he Recruitment and Employment Confederation (REC) revealed that companies had a hard time to fill their vacancies and increasing turned into recruitment agencies.
In August, starting salaries for permanent staff grew at the fastest pace since October 2015, something that is likely to be noticed by officials of the Bank of England which is watching for indications of pay growth as it considers when to begin raising interest rates.
Officials of the BoE have predicted growth in wage will pick up in 2018 after falling in inflation-adjusted terms this year.
British households have noticed their spending power squeezed by an increase in inflation caused in large part by the decrease in the value of sterling since the Brexit vote last year.
However, the REC stated that wage increases might not be sustainable if companies cannot get the people they need to grow.
On Thursday, Jaguar Land Rover, Britain’s biggest carmaker, told Reuters it is feeling the effects of Brexit with non-British EU workers at its plants demanding better terms to compensate for uncertainty regarding their future in the country, and international suppliers less willing to commit to the country.
“There is a significant shortage of people to fill blue collar roles such as drivers, electricians, and construction workers, and this is being exacerbated by a fall in net migration from the EU,” stated REC chief executive, Kevin Green.
The net migration to Britain dropped to its lowest level within three years in the 12 months to the end of March 2017, with more than half the decline caused by citizens of the European Union leaving and fewer arriving since the Brexit vote.
A leaked government document revealed that Britain is considering measures to restrict immigration for all but the highest-skilled EU workers, in plans that business groups described as alarming.