The UK is gradually becoming a magnet for talent from all over Europe, expects Bernard Brown, Partner and Head of Business Services at KPMG. According to Brown, the large influx of talent from all over Europe is the logical consequence of a booming labour market and a declining availability of candidates in the UK.
Every month KPMG analyses, together with the Recruitment and Employment Confederation (REC), the state of the UK labour market. The research is based on a survey held among more than 400 recruiters and employers.
In its most recent publication (‘Report on Jobs’) the researchers conclude that the rate of permanent placements is the fastest in five months, while there simultaneously is a large decline in the availability of permanent candidates. As a result, employers have been forced to increase starting salaries, in order to tempt staff to switch careers. “For the first time in months we are witnessing a churn in the labour market,” says Bernard Brown, Partner and Head of Business Services at KPMG. “Just a few months ago employers couldn’t tempt staff to switch roles, but indications are that employees’ caution over change is being replaced with hunger for something new,” the KPMG partner adds.
On top of higher salaries, the increasing demand and a lack of domestic candidates will, according to Brown, lead to an influx of (skilled) candidates from outside the UK. In his view, this trend exemplifies the fact that the UK is performing better in terms of recovery than its European neighbours.
High demand for talent
The findings of the KPMG report are in sync with a recent research released by counterpart BDO. The rival accounting- and consulting firm concluded that the hiring intentions of UK businesses currently even surpasses their pre-crisis levels, and have reached their highest level since 1998.