Despite the cost-of-living crisis, salaries are decreasing, and have been since Covid-19, according to the latest data from the Association of Professional Staffing Companies (APSCo) – the trade body for the professional recruitment sector.
The data, provided by Bullhorn, – revealed that despite the increased demand for staff since Covid hit the country, average permanent salaries dropped 8 percent between August 2020 and August 2022.
During this same period, the number of permanent jobs added increased 48 percent, while contract roles rose 71 percent.
What about salary increases?
With statistics from the Office for National Statistics (ONS) in August 2020 revealing a growth in GDP for the second consecutive month, this latest data from APSCo indicates that salary increases have failed to keep pace with changes across the economy.
A similar picture is evident in pre-Covid comparisons, with remuneration dropping 7 percent between August 2019 and August 2022.
This suggests that salary inflation across the professional recruitment sector has declined despite demand for talent increasing.
“Increasing salaries while our economic stability is being questioned is understandably unlikely to be a priority or even feasible for many businesses, but to see a decline in pre- and post- Covid salaries is worrying,” says CEO of APSCo, Ann Swain.
“Since 2019 we’ve witnessed a demand for talent on a significant scale and an initial surge in economic activity as restrictions were lifted, but salaries across the professional, highly skilled sectors haven’t risen in line with this. The result is now being felt across the country. With the impact of Brexit also still playing out, this decline in financial incentives for new hires will only have a detrimental impact on the country’s ability to attract the skills needed to bolster the UK’s economy,” adda Ms Swain.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
