Unemployment has fallen again to a 42 year low with the rate now being 4.5%. For workers, this is great news as they can be choosier when looking for roles on the job market, but what does it mean for employers?
Generally speaking, lower unemployment can lead to a more competitive market and therefore employers increase wages and benefits packages to encourage the best available workers to join their firms. Essentially a basic supply and demand occurs in the market.
However, despite the record low level of unemployment, the recent released data revealed that real wages have continued to fall – the three month average rate of wage growth fell to 1.8% in May from 2.1% in April. Wage growth hasn’t been this low since October 2014.
For many employers, this presents a real challenge – how to keep recruiting the right people when so many are already in work?
At Optima, we always try to advise our clients and have salary surveys to showcase how much certain roles are worth on the general market. If you’re finding it difficult to recruit or want to ensure you’re on track with the industry average, don’t hesitate to contact us.